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.

Please send your paper by e-mail: /[RTG=OHrLu+F1CQ~YKg%Xy&\nm]#[%KE@-&35T9[y6L7@dbA_0=^ye_Z 

Please send 2 files:

(1) the main text without the title of the article and the authors (DOC/DOCX file) and

(2) the title page including: the title of the paper, the authors and their affiliation (DOC/DOCX file).

Please read the detailed editing requirements before submitting your text. 

Number of Results 3

WP(15/2026)509. Capturing zero-price effects in stated choice surveys: implications for willingness-to-pay and welfare

Authors: Tjiong Jeff, Dekker Thijs, Hess Stephane, Giergiczny Marek, Ojeda-Cabral Manuel, Czajkowski Mikołaj
Stated choice surveys commonly used in public policy appraisal – such as in transport or environmental economics – often contrast a ‘free’ status quo alternative against a range of (policy) interventions which can be implement…

WP509. Capturing zero-price effects in stated choice surveys: implications for willingness-to-pay and welfare

Stated choice surveys commonly used in public policy appraisal – such as in transport or environmental economics – often contrast a ‘free’ status quo alternative against a range of (policy) interventions which can be implemented at a cost. Limited attention has, however, been paid to the fact that the ‘free’ nature of the status quo (SQ) alternative may make the SQ alternative overly attractive due to the zero-price (ZP) effect. The ZP effect is a well-established notion in behavioural economics explaining the phenomenon that individuals tend to over-react to free alternatives. We present an experimental design setup allowing the separation of the ZP effect from the SQ effect together with the identification of non-linear sensitivities to costs. Choices made by students between different mobile broadband packages are used for illustrational purposes. Our analysis shows that the ZP effect is significant and the observed preference to remain in the SQ is largely due to the ZP effect. In practice, this may lead to biased welfare estimates for public policy packages if the ZP effect is not explicitly accounted for. Moreover, we also show that misspecification of the functional form for cost can lead to significant bias in WTP estimates and the ZP and SQ effects.


DOI: https://doi.org/10.33138/2957-0506.2026.15.509
Tjiong Jeff, Dekker Thijs, Hess Stephane, Giergiczny Marek, Ojeda-Cabral Manuel, Czajkowski Mikołaj
zero-price effect stated choice experiments status quo bias willingness-to-pay welfare analysis discrete choice modelling non-linear cost sensitivity Box-Cox transformation mobile broadband

WP(20/2022)396. Anomalies or Expected Behaviors? Understanding Stated Preferences and Welfare Implications in Light of Contemporary Behavioral Theory

Authors: Lades Leonhard K., Zawojska Ewa, Johnston Robert J., Hanley Nick, Delaney Liam, Czajkowski Mikołaj
The stated preference literature contains an expansive body of research on behavioral anomalies, typically understood as response patterns that are inconsistent with standard neoclassical choice theory. While the literature often implies that anomalo…

WP396. Anomalies or Expected Behaviors? Understanding Stated Preferences and Welfare Implications in Light of Contemporary Behavioral Theory

The stated preference literature contains an expansive body of research on behavioral anomalies, typically understood as response patterns that are inconsistent with standard neoclassical choice theory. While the literature often implies that anomalous behaviors are distinct to stated preferences, widespread evidence of similar patterns across real-world settings raises the potential for an alternative interpretation. We argue that these anomalies might actually reflect behaviors that are to be expected once deviations from the standard economic model and behavioral reactions to the choice architecture in stated preference surveys are considered. The article reviews and organizes the evidence of so-called “anomalous” stated preference behaviors within the context of behavioral science to provide guidance for applied welfare economics. We coordinate evidence on these anomalies using a typology grounded in behavioral science, which groups non-standard behaviors into: non-standard preferences, non-standard beliefs, and non-standard decision-making. We apply this typology to organize the evidence, clarify nomenclature, and understand the implications of non-standard behaviors in stated preference studies for applied welfare analysis. Observing the systematic and common nature of these behaviors in actual and hypothetical settings, we outline possibilities to overcome associated challenges for applied welfare analysis, by adapting new frameworks for welfare analysis proposed within behavioral science.


Lades Leonhard K., Zawojska Ewa, Johnston Robert J., Hanley Nick, Delaney Liam, Czajkowski Mikołaj
anomalies behavioral science non-standard behaviors stated preferences welfare analysis

WP(19/2017)248. Business cycles, innovation and growth: welfare analysis

Authors: Bielecki Marcin
Endogenous growth literature treats deliberate R&D effort as the main engine of long-run growth. It has been already recognized that R&D expenditures are procyclical. This paper builds a microfounded model that generates procyclical aggregate…

WP248. Business cycles, innovation and growth: welfare analysis

Endogenous growth literature treats deliberate R&D effort as the main engine of long-run growth. It has been already recognized that R&D expenditures are procyclical. This paper builds a microfounded model that generates procyclical aggregate R&D investment as a result of optimizing behavior by heterogeneous monopolistically competitive firms. I find that business cycle fluctuations affect the aggregate endogenous growth rate of the economy so that transitory shocks leave lasting level effects on the economy's Balanced Growth Path. This result stems from both procyclical R&D expenditures of the incumbents and procyclical firm entry rates. This mechanism generates economically significant hysteresis effects, increasing the welfare cost of business cycles by two orders of magnitude relative to the exogenous growth model. Coupled with potential to affect endogenous growth rates, ample space for welfare improving policy interventions arises. The paper evaluates the effects of selected subsidy schemes and finds some of them welfare improving.


DOI: https://doi.org/10.26405/WP/WNE/2017/248/019
Bielecki Marcin
business cycles firm dynamics innovation growth welfare analysis
  • 1