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Revisiting Cheap Talk with New Evidence from a Field Experiment

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  • Silva, Andres
  • Nayga, Rodolfo M., Jr.
  • Campbell, Benjamin L.
  • Park, John L.

Abstract

We assess the reduction of hypothetical bias in consumers’ willingness to pay (WTP) for products by applying a generic, short, and neutral cheap talk script in a retail setting. Using an open-ended elicitation mechanism with non-hypothetical, hypothetical, and hypothetical with cheap talk treatments, our results indicate that the hypothetical WTP values are higher than the nonhypothetical values, but the hypothetical with cheap talk values are not significantly different from non-hypothetical estimates.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 36 (2011)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:jlaare:117168

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Web page: http://waeaonline.org/
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Related research

Keywords: BDM; cheap talk; field experiment; hypothetical bias; willingness-to-pay; Research Methods/ Statistical Methods;

References

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Cited by:
  1. Caputo, Vincenzina & Vassilopoulos, Achilleas & Nayga, Rodolfo M., Jr. & Canavari, Maurizio, 2010. "Welfare Effects of Food Miles Labels," 120th Seminar, September 2-4, 2010, Chania, Crete 109314, European Association of Agricultural Economists.
  2. de Magistris, Tiziana & Pascucci, Stefano, 2012. "Consumers´ preferences for the millennium bugs. Does “solemn oath” mitigate the hypothetical bias in choice experiment?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124834, Agricultural and Applied Economics Association.
  3. Van Wezemael, Lynn & Caputo, Vincenzina & Nayga, Rodolfo M. & Chryssochoidis, George & Verbeke, Wim, 2014. "European consumer preferences for beef with nutrition and health claims: A multi-country investigation using discrete choice experiments," Food Policy, Elsevier, vol. 44(C), pages 167-176.
  4. Caputo, Vincenzina & Aprile, Maria Carmela & Nayga, Rodolfo M., Jr., 2011. "Consumers’ Valuation for European food quality labels: Importance of Label Information Provision," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114324, European Association of Agricultural Economists.

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