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Comparing treatments to reduce hypothetical bias in choice experiments regarding organic food

Author

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  • Adelina Gschwandtner
  • Michael Burton

Abstract

Hypothetical bias is one of the strongest criticisms brought to stated preference methods. We evaluate and compare the use of Cheap Talk and Honesty Priming as methods to mitigate such bias. Our study analyses the demand for organic food products in the UK, and the results reveal a core of consumers with positive willingness to pay (WTP) for organic. However, when correcting for hypothetical bias, consumers appear to be willing to pay even more for other attributes. Most importantly, the results show that implementing mechanisms to correct for hypothetical bias are efficient to reduce WTP, with Cheap Talk having a higher overall significance than Honesty Priming.

Suggested Citation

  • Adelina Gschwandtner & Michael Burton, 2020. "Comparing treatments to reduce hypothetical bias in choice experiments regarding organic food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(3), pages 1302-1337.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:3:p:1302-1337.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz047
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    Citations

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    Cited by:

    1. Uddin, Md Azhar & Gao, Zhifeng & Farnsworth, Derek & Borisova, Tatiana & Bolques, Alejandro, 2022. "Mitigation of Hypothetical Bias in Estimating Consumers' Willingness to Pay for Best Management Practice Labels," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322431, Agricultural and Applied Economics Association.
    2. Filiptseva, Anna & Filler, Günther & Odening, Martin, 2022. "Compensation Options for Quarantine Costs in Plant Production," 62nd Annual Conference, Stuttgart, Germany, September 7-9, 2022 329595, German Association of Agricultural Economists (GEWISOLA).
    3. Adelina Gschwandtner & Jose Eduardo Ribeiro & Cesar Revoredo-Giha & Michael Burton, 2021. "Combining Stated and Revealed Preferences for valuing Organic Chicken Meat," Studies in Economics 2113, School of Economics, University of Kent.
    4. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    5. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    6. Eva Crespo-Cebada & Carlos Díaz-Caro & María Teresa Nevado Gil & Ángel Sabino Mirón Sanguino, 2020. "Does Water Pollution Influence Willingness to Accept the Installation of a Mine Near a City? Case Study of an Open-Pit Lithium Mine," Sustainability, MDPI, vol. 12(24), pages 1-13, December.
    7. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    8. Alfredo J. Escribano & Maria Belen Peña & Carlos Díaz-Caro & Ahmed Elghannam & Eva Crespo-Cebada & Francisco J. Mesías, 2021. "Stated Preferences for Plant-Based and Cultured Meat: A Choice Experiment Study of Spanish Consumers," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    9. Vo Hong Tu & Steven W. Kopp & Nguyen Thuy Trang & Andreas Kontoleon & Mitsuyasu Yabe, 2021. "UK Consumers’ Preferences for Ethical Attributes of Floating Rice: Implications for Environmentally Friendly Agriculture in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-27, July.
    10. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.

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