Reducing Status Quo Bias in Choice Experiments – An Application of a Protest Reduction Entreaty
AbstractIn stated preference literature, the tendency to choose the alternative representing the status quo situation seems to exceed real life status quo effects. Accordingly, status quo bias can be a problem. In Choice Experiments, status quo bias is found to be strongly correlated with protest attitudes toward the cost attribute. If economic values are to be elicited, this problem is difficult to remedy. In a split sample framework we test a novel ex-ante entreaty aimed specifically at the cost attribute and find that it effectively reduces status quo bias and improves the internal validity of the hypothetical preferences.
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Bibliographic InfoPaper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2010/7.
Length: 22 pages
Date of creation: Jun 2010
Date of revision:
Choice Experiment; Status Quo Bias; Entreaty; Stated Preference;
Find related papers by JEL classification:
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-CBE-2010-07-03 (Cognitive & Behavioural Economics)
- NEP-DCM-2010-07-03 (Discrete Choice Models)
- NEP-ECM-2010-07-03 (Econometrics)
- NEP-EXP-2010-07-03 (Experimental Economics)
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