Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

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Number of Results 2

WP(1/2020)307. Valuing externalities of outdoor advertising in an urban setting – the case of Warsaw

Authors: Czajkowski Mikołaj, Bylicki Michał, Budziński Wiktor, Buczyński Mateusz
Outdoor advertising produces externalities, such as visual pollution, that have to be considered in cityscape planning. In recent years, opposition to excessive outdoor advertising in Poland has grown, resulting in the enactment of new regulations in…

WP307. Valuing externalities of outdoor advertising in an urban setting – the case of Warsaw

Outdoor advertising produces externalities, such as visual pollution, that have to be considered in cityscape planning. In recent years, opposition to excessive outdoor advertising in Poland has grown, resulting in the enactment of new regulations in 2015: The Landscape Bill. It allows local authorities to limit outdoor advertising in their municipality. We present the results of a stated preference study aimed at estimating the value that people attach to the reductions of outdoor advertising in Warsaw, the capital of Poland. We considered two types of outdoor advertising mediums: free-standing ads and on-building ads, alongside five levels of advertising reduction. We find that inhabitants of Warsaw prefer regulating and limiting the amount of outdoor advertising and we quantify their willingness to pay for such a policy. The most preferred level of free-standing ads was a 75% reduction, for which the people of Warsaw are willing to pay 5.6 million EUR annually in the form of increased prices and rents to compensate owners' losses. For on-building ads, total ban was the most preferred, valued at 11.3 million EUR per year. Socio-demographic drivers of people's willingness to pay are explored. Overall, our study demonstrates how stated preference methods can be used for informing urban landscape policies and adds to the ongoing debate surrounding outdoor advertising.


Czajkowski Mikołaj, Bylicki Michał, Budziński Wiktor, Buczyński Mateusz
Outdoor advertising public preferences stated preference methods discrete choice experiment willingness to pay

WP(35/2015)183. Does the number of discrete choice alternatives matter for respondents’ stated preferences? The case of tap water quality improvements

Authors: Czajkowski Mikołaj, Giergiczny Marek, Zawojska Ewa
Contingent valuation is among the most widely used techniques for studying consumers’ preferences. Nevertheless, whether respondents reveal their true preferences in contingent valuation surveys is still the subject of academic debate. The exis…

WP183. Does the number of discrete choice alternatives matter for respondents’ stated preferences? The case of tap water quality improvements

Contingent valuation is among the most widely used techniques for studying consumers’ preferences. Nevertheless, whether respondents reveal their true preferences in contingent valuation surveys is still the subject of academic debate. The existing literature indicates that the truthful disclosure of preferences pivots on the number of alternatives presented in a single choice task. On a theoretical basis, the use of a two-alternative task format has long been recommended because of its incentive-compatible properties, which ensure that respondents’ disclosure of their true preferences constitutes their optimal strategy. However, the empirical literature presents nascent evidence that providing more than two choice alternatives may increase the respondents’ likelihood of finding an option that satisfactorily matches their preferences; consequently, a multiple-alternative task format likely enhances the accuracy of preference disclosures. Furthermore, empirical studies often employ multiple alternatives for a single task because of statistical efficiency gains. The lack of consensus about the impact of the number of alternatives on respondents’ truthfulness when stating their preferences in contingent valuation surveys motivates this study. Using data from a discrete choice experiment, we examine whether willingness-to-pay (WTP) estimates depend on the number of alternatives provided for a single choice task. We employ a split-sample design that uses two- and three-alternative formats in a contingent valuation survey of proposed public policies for the improvement of tap water quality (iron and chorine content, hardness) in Milanówek, a town in the Warsaw agglomeration in Poland. Drawing on a generalized mixed logit model with scale heterogeneity, we find no significant differences in the mean WTP values elicited with two- and three-alternative tasks, while the WTP estimates based on three-alternative tasks appear to have relatively lower standard errors compared with two-alternative tasks. This finding indicates that using three or more alternatives per choice task may offer a way to increase efficiency without biasing the results.


Czajkowski Mikołaj, Giergiczny Marek, Zawojska Ewa
stated preference methods contingent valuation discrete choice experiment incentive compatibility number of alternatives field study tap water quality
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