Applied Economics Letters
This study investigates whether a ‘free sampling’ marketing strategy induces an enduring WTP premium effect for public goods. Using data from a unique field experiment involving curbside recycling, we find that the premium effect associated with providing non-participating households a brief opportunity to participate in a curbside recycling program for free is relatively small and not enduring. It may therefore not be cost effective to offer a free-sampling participation incentive for this type (or similar types) of local public good(s).
Caplan, Arthur J., Douglas Jackson-Smith, and Sandra Marquart-Pyatt (2010) “Does ‘Free Sampling’ Enhance the Value of Public Goods?” Applied Economics Letters, 17(4), 335-339.