Consumer preferences in the consumption of public goods

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Year of publication 2018
Type Article in Proceedings
Conference Teoretické a praktické aspekty veřejných financí : XXIII. ročník mezinárodní odborné konference
MU Faculty or unit

Faculty of Economics and Administration

Keywords consumer; experiment; internal factors; willingness to pay
Description The decision-making process in political market is determined by economic context (market failure in the production of goods of pure public goods) and political context (Downson's model of the political cycle, the problem of cyclical choice, logrolling, rational ignorance and others). The reallocation of resources in the economy in favor of the provision of public services therefore has a certain degree of inefficiency in itself. This degree of inefficiency could be reduced by introducing alternative ways of securing public goods on a voluntary basis when individuals are not guided only by financial motives but also by social or behavioral motives such as altruism, warm-glow effect, and social norms. Regardless of whether this is a field or laboratory experiment, the level of voluntary provision of public goods can be affected in a positive or in a negative way. The ability of an experimenter to influence a particular factor by a different set of instruction can significantly affect the willingness of individuals to voluntarily pay for public goods. The aim of the paper is to find out if different instructions lead to a different rate of voluntary payment for public goods. We assume that individuals are particularly affected by internal factors when deciding. Individuals' decision whether to voluntarily pay has been influenced by risk perception, warm-glow effects and the social position of the individual.
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