Advanced Search
MyIDEAS: Login to save this article or follow this journal

A Test of Cheap Talk in Different Hypothetical Contexts: The Case of Air Pollution

Contents:

Author Info

  • Dominique Ami
  • Frédéric Aprahamian
  • Olivier Chanel

    ()

  • Stéphane Luchini

Abstract

We explore the influence of a neutral cheap talk script in three typical scenarios used in the CV literature devoted to the valuation of air pollution effects. We show that cheap talk has a differentiated effect depending on the scenario implemented. It decreases protest responses with no effect on WTP values in the scenario based on a new drug. When a move to a less polluted city is involved, it has no effect on protest responses but decreases WTP values. Surprisingly, cheap talk increases protest responses but decreases WTP values when new regional air pollution regulations are at stake.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s10640-011-9464-z
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 50 (2011)
Issue (Month): 1 (September)
Pages: 111-130

as in new window
Handle: RePEc:kap:enreec:v:50:y:2011:i:1:p:111-130

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: Willingness to pay; Contingent valuation; Cheap talk; Protest response; Field experiment; Air pollution; D6; C9;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Cameron, Trudy Ann & Englin, Jeffrey, 1997. "Respondent Experience and Contingent Valuation of Environmental Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 296-313, July.
  2. John List, 2001. "Do explicit warnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sportscards," Framed Field Experiments 00163, The Field Experiments Website.
  3. Thomas Broberg, 2010. "Income Treatment Effects in Contingent Valuation: The Case of the Swedish Predator Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(1), pages 1-17, May.
  4. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
  5. David Aadland & Arthur Caplan, 2003. "Curbside Recycling: Waste Resource or Waste of Resources?," Working Papers 2003-13, Utah State University, Department of Economics.
  6. Laura O. Taylor & Ronald G. Cummings, 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.
  7. Horowitz, John K. & McConnell, K. E., 2003. "Willingness to accept, willingness to pay and the income effect," Journal of Economic Behavior & Organization, Elsevier, vol. 51(4), pages 537-545, August.
  8. Krupnick, Alan & Cropper, Maureen & Alberini, Anna & Heintzelman, Martin & Simon, Nathalie & O'Brien, Bernie & Goeree, Ron, 2000. "Age, Health, and the Willingness to Pay for Mortality Risk Reductions: A Contingent Valuation Survey of Ontario Residents," Discussion Papers dp-00-37, Resources For the Future.
  9. Ronald G. Cummings & Laura Osborne Taylor, 1998. "Does Realism Matter in Contingent Valuation Surveys?," Land Economics, University of Wisconsin Press, vol. 74(2), pages 203-215.
  10. 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.
  11. Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August.
  12. Caplan, Arthur J. & Aadland, David & Macharia, Anthony, 2010. "Estimating Hypothetical Bias in Economically Emergent Africa: A Generic Public Good Experiment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(2), April.
  13. David Aadland & Arthur J. Caplan, 2003. "Willingness to Pay for Curbside Recycling with Detection and Mitigation of Hypothetical Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 492-502.
  14. repec:hal:cesptp:halshs-00176056 is not listed on IDEAS
  15. List John A. & Sinha Paramita & Taylor Michael H., 2006. "Using Choice Experiments to Value Non-Market Goods and Services: Evidence from Field Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-39, January.
  16. Craig E. Landry & John A. List, 2007. "Using Ex Ante Approaches to Obtain Credible Signals for Value in Contingent Markets: Evidence from the Field," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 420-429.
  17. Olivier Chanel & Stéphane Luchini, 2007. "Modeling Starting Point Bias as Unobserved Heterogeneity in Contingent Valuation Surveys: An Application to Air Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 533-547.
  18. Aadland, David & Caplan, Arthur J., 2006. "Cheap talk reconsidered: New evidence from CVM," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 562-578, August.
  19. 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.
  20. Eve J. Froehlich & Jared G. Carlberg & Clement E. Ward, 2009. "Willingness-to-Pay for Fresh Brand Name Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 119-137, 03.
  21. Karen Blumenschein & GlennC. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, 01.
  22. Mariah D. Ehmke & Jayson L. Lusk & John A. List, 2008. "Is Hypothetical Bias a Universal Phenomenon? A Multinational Investigation," Land Economics, University of Wisconsin Press, vol. 84(3), pages 489-500.
  23. Yohei Mitani & Nicholas E. Flores, 2009. "Demand Revelation, Hypothetical Bias, and Threshold Public Goods Provision," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 231-243, October.
  24. Olivier Chanel & Susan Cleary & Stephane Luchini, 2006. "Does public opinion influence willingness-to-pay? Evidence from the field," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 821-824.
  25. 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.
  26. James Murphy & Thomas Stevens & Lava Yadav, 2010. "A Comparison of Induced Value and Home-Grown Value Experiments to Test for Hypothetical Bias in Contingent Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(1), pages 111-123, September.
  27. repec:ebl:ecbull:v:2:y:2007:i:1:p:1-9 is not listed on IDEAS
  28. Herriges, Joseph A. & Kling, Catherine L. & Liu, Chih-Chen & Tobias, Justin, 2009. "What Are the Consequences of Consequentiality?," Staff General Research Papers 13034, Iowa State University, Department of Economics.
  29. Nicolas Jacquemet & Alexander G. James & Stéphane Luchini & Jason F. Shogren, 2010. "Social psychology and environmental economics : a new look at ex ante corrections of biased preference evaluation," Documents de travail du Centre d'Economie de la Sorbonne 10016, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  30. Jürgen Meyerhoff & Ulf Liebe, 2008. "Do protest responses to a contingent valuation question and a choice experiment differ?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(4), pages 433-446, April.
  31. Jacob Ladenburg & Søren Bøye Olsen, 2010. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," IFRO Working Paper 2010/9, University of Copenhagen, Department of Food and Resource Economics.
  32. Samnaliev, Mihail & Stevens, Thomas H. & More, Thomas, 2006. "A comparison of alternative certainty calibration techniques in contingent valuation," Ecological Economics, Elsevier, vol. 57(3), pages 507-519, May.
  33. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801, September.
  34. John A. List & Robert P. Berrens & Alok K. Bohara & Joe Kerkvliet, 2004. "Examining the Role of Social Isolation on Stated Preferences," American Economic Review, American Economic Association, vol. 94(3), pages 741-752, June.
  35. repec:hal:cesptp:halshs-00462193 is not listed on IDEAS
  36. Emmanuel FLACHAIRE & Guillaume HOLLARD & Stéphane LUCHINI, 2007. "Heterogeneous anchoring in dichotomous choice valuation framework," Discussion Papers (REL - Recherches Economiques de Louvain) 2007042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  37. Mark Morrison & Thomas Brown, 2009. "Testing the Effectiveness of Certainty Scales, Cheap Talk, and Dissonance-Minimization in Reducing Hypothetical Bias in Contingent Valuation Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(3), pages 307-326, November.
  38. Algan, Yann & Cahuc, Pierre, 2007. "La société de défiance : comment le modèle social français s'autodétruit ?," Opuscules du CEPREMAP, CEPREMAP, number 09, May.
  39. Jette Jacobsen & Nick Hanley, 2009. "Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 137-160, June.
  40. Carlsson, Fredrik & Martinsson, Peter, 2006. "Do Experience and Cheap Talk influence Willingness to Pay in an Open-Ended Contingent Valuation Survey?," Working Papers in Economics 190, University of Gothenburg, Department of Economics.
  41. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
  42. 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.
  43. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
  44. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2007. "Anonymity, Reciprocity, and Conformity: Evidence from Voluntary Contributions to a National Park in Costa Rica," Working Papers in Economics 245, University of Gothenburg, Department of Economics.
  45. Sinden, Jack A., 1988. "Empirical Tests Of Hypothetical Bias In Consumers' Surplus Surveys," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(02-03).
  46. Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, vol. 29(4), pages 247-261, November.
  47. repec:ebl:ecbull:v:3:y:2004:i:6:p:1-13 is not listed on IDEAS
  48. repec:hal:cesptp:halshs-00584247 is not listed on IDEAS
  49. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  50. Alberini, Anna & Cropper, Maureen & Krupnick, Alan & Simon, N.B.Nathalie B., 2004. "Does the value of a statistical life vary with age and health status? Evidence from the US and Canada," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 769-792, July.
  51. Jacquemet, Nicolas & Joule, Robert-Vincent & Luchini, Stéphane & Shogren, Jason F., 2009. "Earned wealth, engaged bidders? Evidence from a second-price auction," Economics Letters, Elsevier, vol. 105(1), pages 36-38, October.
  52. Giles Atkinson & Sian Morse-Jones & Susana Mourato & Allan Provins, 2012. "‘When to Take “No” for an Answer’? Using Entreaties to Reduce Protests in Contingent Valuation Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(4), pages 497-523, April.
  53. James Murphy & Thomas Stevens & Darryl Weatherhead, 2005. "Is Cheap Talk Effective at Eliminating Hypothetical Bias in a Provision Point Mechanism?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 327-343, 03.
  54. Schkade David A. & Payne John W., 1994. "How People Respond to Contingent Valuation Questions: A Verbal Protocol Analysis of Willingness to Pay for an Environmental Regulation," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 88-109, January.
  55. repec:hal:cesptp:halshs-00429894 is not listed on IDEAS
  56. Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2009. "The Effect of Power Outages and Cheap Talk on Willingness to Pay to Reduce Outages," IZA Discussion Papers 4307, Institute for the Study of Labor (IZA).
  57. David Aadland & Arthur Caplan & Owen Phillips, 2007. "A Bayesian examination of information and uncertainty in contingent valuation," Journal of Risk and Uncertainty, Springer, vol. 35(2), pages 149-178, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. repec:hal:journl:halshs-00462193 is not listed on IDEAS
  2. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason Shogren, 2011. "Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(3), pages 413-433, March.
  3. repec:hal:journl:halshs-00584247 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:50:y:2011:i:1:p:111-130. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.