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On the Use of Cheap Talk in New Product Valuation Author info | Abstract | Publisher info | Download info | Related research | Statistics Robert G. Brummett () (Texas A&M University)
Rodolfo M. Nayga, Jr. () (Texas A&M University)
Ximing Wu () (Texas A&M University)
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This study reports on the potential use of “cheap talk” in hypothetical new product valuation research using a simple field experiment eliciting subjects’ willingness to pay for a new product. While cheap talk has been used in the non-market valuation literature, its application in hypothetical new product valuation research is very limited.
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Article provided by Economics Bulletin in its journal Economics Bulletin .
Volume (Year): 2 (2007)
Issue (Month): 1 ()
Pages: 1-9
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Handle: RePEc:ebl:ecbull:v:2:y:2007:i:1:p:1-9Contact details of provider: Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA Phone: 615-322-2920 Fax: 615-343-8495 Email: Web page: http://www.economicsbulletin.com
For technical questions regarding this item, or to correct its listing, contact: (John Conley).
Keywords: cheap talk ; field experiment ; hypothetical bias ; new product valuation ; Find related papers by JEL classification: B4 - Schools of Economic Thought and Methodology - - Economic Methodology
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Hayes, Dermot & Fox, John A. & Shogren, Jason F., 2002.
"Experts and Activists: How Information Affects the Demand for Food Irradiation ,"
Staff General Research Papers
10105, Iowa State University, Department of Economics.
Other versions: John List & Craig Gallet, 2001.
"What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values? ,"
Environmental & Resource Economics ,
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[Downloadable!] (restricted)
John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1997.
"Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation ,"
Environmental & Resource Economics ,
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Cameron, Trudy Ann & Huppert, Daniel D., 1989.
"OLS versus ML estimation of non-market resource values with payment card interval data ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 17(3), pages 230-246, November.
[Downloadable!] (restricted)
List, John A. & Margolis, Michael & Shogren, Jason F., 1998.
"Hypothetical-actual bid calibration of a multigood auction ,"
Economics Letters ,
Elsevier, vol. 60(3), pages 263-268, September.
[Downloadable!] (restricted)
Other versions: Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005.
"Using cheap talk as a test of validity in choice experiments ,"
Economics Letters ,
Elsevier, vol. 89(2), pages 147-152, November.
[Downloadable!] (restricted)
Other versions: Gregory Poe & Jeremy Clark & Daniel Rondeau & William Schulze, 2002.
"Provision Point Mechanisms and Field Validity Tests of Contingent Valuation ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 23(1), pages 105-131, September.
[Downloadable!] (restricted)
Rowe, Robert D. & Schulze, William D. & Breffle, William S., 1996.
"A Test for Payment Card Biases ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 31(2), pages 178-185, September.
[Downloadable!] (restricted)
James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005.
"A Meta-analysis of Hypothetical Bias in Stated Preference Valuation ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, 03.
[Downloadable!] (restricted)
Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James B., 1999.
"CVM-X: Calibrating Contingent Values with Experimental Auction Markets ,"
Staff General Research Papers
1311, Iowa State University, Department of Economics.
Other versions: Brown, Thomas C. & Ajzen, Icek & Hrubes, Daniel, 2003.
"Further tests of entreaties to avoid hypothetical bias in referendum contingent valuation ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 46(2), pages 353-361, September.
[Downloadable!] (restricted)
Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995.
"Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible? ,"
American Economic Review ,
American Economic Association, vol. 85(1), pages 260-66, March.
John A. List, 2001.
"Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards ,"
American Economic Review ,
American Economic Association, vol. 91(5), pages 1498-1507, December.
[Downloadable!] (restricted)
Jayson L. Lusk, 2003.
"Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice ,"
American Journal of Agricultural Economics ,
American Agricultural Economics Association, vol. 85(4), pages 840-856, November.
[Downloadable!] (restricted)
Other versions: Ronald G. Cummings & Laura O. Taylor, 1999.
"Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method ,"
American Economic Review ,
American Economic Association, vol. 89(3), pages 649-665, June.
[Downloadable!] (restricted)
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