Does ‘Free Sampling’Enhance the Value of Public Goods?
Applied Economics Letters
Taylor & Francis
This study investigates whether ‘free sampling’ enhances the value of public goods. Using data from a unique field experiment, we find that the WTP premium effect associated with a brief opportunity to consume a local public good for free is relatively small and temporary. It therefore may not be cost effective to offer free-participation incentives for public goods.
Caplan, A.J., D. Jackson-Smith, and S. Marquart-Pyatt (2010) “Does ‘Free Sampling’ Enhance the Value of Public Goods?” Applied Economics Letters, 17(4), 335-339.