Does 'Free-Sampling' Enhance the Value of Public Goods?Economics Research Institute Study Paper
PublisherUtah State University Department of Economics
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AbstractThis 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).
Citation InformationArthur J. Caplan, Douglas Jackson-Smith and Sandra Marquart-Pyatt. "Does 'Free-Sampling' Enhance the Value of Public Goods?" Economics Research Institute Study Paper Vol. 2 (2007) p. 1 - 24
Available at: http://works.bepress.com/arthur_caplan/102/