CeDEx workshop - Nick Hanley (University of St Andrews)

The effects of knowledge, experience and information on preferences and values

In this seminar, I summarise results from three recent papers where we study the effects of knowledge, information and learning on stated preferences and on willingness to pay. Using choice modelling, we show that increases in experience about a good result in less random choices about this good, whilst increases in information lead to a change in willingness to pay. Receiving an external signal about the extent of one’s knowledge also changes willingness to pay, but in an asymmetric way, which we liken to a good news/bad news effect.