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Using Respondent Uncertainty to Mitigate Hypothetical Bias in a Stated Choice Experiment

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  • Richard C. Ready
  • Patricia A. Champ
  • Jennifer L. Lawton

Abstract

In a choice experiment study, willingness to pay for a public good estimated from hypothetical choices was three times as large as willingness to pay estimated from choices requiring actual payment. This hypothetical bias was related to the stated level of certainty of respondents. We develop protocols to measure respondent certainty in the context of a choice experiment, and to calibrate hypothetical choices using these certainty measures. While both the measurement of respondent certainty and the use of certainty measures to calibrate responses are complicated by the multiple-choice nature of choice experiments, calibration successfully mitigated hypothetical bias in this application.

Suggested Citation

  • Richard C. Ready & Patricia A. Champ & Jennifer L. Lawton, 2010. "Using Respondent Uncertainty to Mitigate Hypothetical Bias in a Stated Choice Experiment," Land Economics, University of Wisconsin Press, vol. 86(2), pages 363-381.
    • Handle: RePEc:uwp:landec:v:86:y:2010:i:2:p:363-381
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    References listed on IDEAS

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    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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