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Study 1. Each subject read the GENERAL INSTRUCTION first, followed by SPECIFIC INSTRUCTIONS for the experimental condition to which he or she was assigned. We also include one conjoint task example and one contingent valuation task example.

GENERAL INSTRUCTION (for all experimental conditions)

You are about to participate in an experiment designed to understand how people like you value a variety of different Chinese meals (Dinner Specials). We would ask that you pay close attention to the different meals being offered and determine an accurate value for each meal.

You will receive $10 for participating in this experiment.

Before proceeding with the remainder of the study, we would like to familiarize you with the type of meals that you will be considering. Each Dinner Special will be described by 8 attributes: (During the course of the study, you may wish to refer to the following table).

Attribute Levels

Soup No Soup Hot & Sour Soup Egg Drop Soup

Rice/Noodle White Rice Brown Rice Noodles

Sauce Brown Sauce Szechwan Sauce

(Hot and Spicy)

Sweet and Sour Sauce Vegetables No Vegetables Standard Vegetables* Tofu & Exotic

Vegetables**

Meat No Meat Beef Chicken Shrimp

Spring Roll Vegetable Spring Roll Pork Spring Roll

Quantity Pint Quart (2 Pints)

Price $3.99 $4.99 $5.99

*Standard Vegetables: (Includes common vegetables that you would find in a supermarket, e.g. broccoli, green peppers, green beans, mushrooms, snow peas, etc.).

**Exotic Vegetables: (Includes vegetables usually found in Asia, e.g., bamboo shoots, Shanghai Bokchoy, Green Mustard, Chinese egg, among others). SPECIFIC INSTRUCTIONS

Non–Incentive-Aligned Conjoint

You will be shown twelve sets of three meals. For each set of three meals, imagine that you were asked to choose between no meal and one of these three different meals at the stated price. Select the most attractive option (which could include not selecting any of the meals).

Incentive-Aligned Conjoint

You now have an opportunity to select a Chinese Dinner Special and have it cooked here in the restaurant before you leave. Here is how it works. You will be shown twelve sets of three meals. For each set of three meals, please choose between no meal and one of these three

different meals at the stated price (which could include not selecting any of the meals). After you complete your selection, we will randomly choose a set from these twelve sets, and your choice for that set will be fulfilled. If you have selected no meal for that set, you will be given $10 cash to take home; if you have selected a meal for that set, the restaurant will cook that meal for you, and you will be given $10 minus the price of that meal as stated.

An Example of the Conjoint Task

Choice Set 1

Attributes Meal 1 Meal 2 Meal 3

Soup Hot & Sour Hot & Sour Hot & Sour

Rice/Noodle Noodles White Rice Brown Rice

Sauce Brown Sauce Szechwan

Sauce

Sweet and Sour Sauce Vegetables No Vegetables Standard

Vegetables

Tofu & Exotic Vegetables

Meat No Meat Beef Chicken

Spring Roll Vegetable Pork Pork

Quantity Pint Pint Quart

Price $3.99 $5.99 $5.99

Please indicate which meal you would choose (circle your choice).

• Meal 1

• Meal 2

• Meal 3

• None of the Above

Non–Incentive-Aligned Contingent Valuation

You will be shown twelve different meals. For each meal, imagine that you were to state the price you would be willing to pay for the meal, and then write down the price for the meal. Incentive-Aligned Contingent Valuation (BDM Procedure)

You will be presented with twelve meals in this part of the experiment; please tell us the highest price you would be willing to pay for each meal. After you state your maximum prices for all twelve meals, we will determine which meal you will actually buy and how much you will pay for it based on the following procedure.

First, you will be asked to draw a ball from an envelope, which contains 12 balls labeled 1–12. You will be able to purchase the meal that has the same number as the one written on the ball.

Next, you will be asked to draw a ball/ticket from another envelope. The balls/tickets are labeled with different prices; the range of these prices is reasonable for a Chinese Dinner Special, neither too high nor too low. If you draw a price that is less than or equal to the price you choose for that meal, you will have to buy the Special for the price you drew from the envelope. If the price you draw is greater than the price you choose, you will not be able to buy that particular meal. This procedure ensures that it is best for you to truthfully reveal the maximum price you are willing to pay for each meal. If you choose a price that is high, you may actually have to pay that high price. If you choose a price that is low, you may be disappointed if you can’t buy the meal at the low price because you drew a price that is higher than the price you choose but lower than your “true” price. Note that you cannot influence the purchase price with the price you choose. Because you draw the purchase price from the envelope, it is completely random and independent of whatever you choose. For example, if you state your maximum price for Meal 3 is $7.24, and you draw a price of $2.30, you will receive Meal 3 for $2.30, and receive remaining the $7.70 ($10 – $2.30) in cash.

An Example of the Contingent Valuation Task Meal 1

Attributes Description

Soup Egg Drop

Rice/Noodle Noodles

Sauce Brown Sauce

Vegetables Tofu & Exotic Vegetables Meat Beef

Spring Roll Vegetable

Quantity Pint