Experimental auction confirmation that social desirability bias does not predict willingness to pay for eco-labeled goods

Abstract

It is often assumed that consumers’ willingness to pay (WTP) for eco-labeled products in research settings is not because of a desire for environmental protection, but rather that they are socially compelled to make decisions that reflects favorably on them, limiting the validity of findings. Using a second-price Vickrey experimental auction, this study found higher WTP for an eco-labeled product than a comparable good, but that social desirability bias, measured by the Marlowe–Crowne Social Desirability Scale, was not a significant predictor of WTP. Instead, environmental consciousness, environmental knowledge, education, and available information were stronger predictors of WTP for eco-labeled goods.

Keywords

• eco-label
• experimental auction
• second-price Vickrey auction
• social desirability bias
• willingness to pay