Does ‘Free Sampling’Enhance the Value of Public Goods?

Document Type

Article

Journal/Book Title

Applied Economics Letters

Publication Date

2010

Publisher

Taylor & Francis

Volume

17

Issue

4

First Page

335

Last Page

339

Abstract

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.

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