Using Experimental Method to Elicit Consumer Preferences for Public Decision

Individual preferences must be evaluated to take into account the citizens' interests for public decisions. Usually, economists assess individual preferences through market decisions. But more often, public decisions impact goods without market prices. Without a market to refer to, evaluating the consequences of a public decision on individual welfare is a challenging methodological problem. In spite of major improvements, preference studies built on hypothetical questions (survey or contingent hypothetical valuations) are biased. Experimental economics is a promising alternative to obtain directly individual valuation for a choice, a scenario or a nonmarket good. Preference study in the lab based on the experimental method is a growing field. This paper aims to present this approach. Precisely, this paper answers the following questions: Why is it interesting to use the experimental method to elicit individual preferences? And how to conduct this category of experiments?