PT  - JOURNAL ARTICLE
AU  - Loureiro, Maria L.
AU  - McCluskey, Jill J.
AU  - Mittelhammer, Ron C.
TI  - Are Stated Preferences Good Predictors of Market Behavior?
AID  - 10.2307/3147104
DP  - 2003 Feb 01
TA  - Land Economics
PG  - 44--45
VI  - 79
IP  - 1
4099  - http://le.uwpress.org/content/79/1/44.short
4100  - http://le.uwpress.org/content/79/1/44.full
SO  - Land Econ2003 Feb 01; 79
AB  - Using an economic experiment in conjunction with a survey, we analyze whether consumers’ hypothetical willingness-to-pay responses are effective predictors of actual market behavior. We model revealed preferences as a function of socio-demographic characteristics and instrumental variables that represent the intensity of stated preferences. Our findings show that consumers who state that they are willing to pay a premium, which is equal to or greater than a positive lower bound, have a higher likelihood of actually buying the product in question. This implies that consumers’ actions in the economic experiment validate their survey responses. (JEL Q13, Q26)