Advanced Search
MyIDEAS: Login

Rationality, Tort Reform and Contingent Valuation: A Classroom Experiment in Starting Point Bias

Contents:

Author Info

  • Victor Matheson

    ()
    (Department of Economics, College of the Holy Cross)

Abstract

This simple classroom experiment demonstrates the existence of starting point bias. Asked to place a dollar value on a non-market good such as the loss of a limb or the destruction of a wetland, students place a much smaller value on the loss if a small value is first suggested by the questioner while placing a significantly higher value on the loss when a large value is originally suggested. This experiment can be used in theory classes to demonstrate the limits of individual rationality or in applied classes in law or environmental economics in relation to tort reform or contingent valuation.

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://college.holycross.edu/RePEc/hcx/Matheson_StartingPoint.pdf
File Function: Original version presented at Western Economic Association Meetings, Vancouver, BC, July 2004
Download Restriction: no

Bibliographic Info

Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0509.

as in new window
Length: 12 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:hcx:wpaper:0509

Contact details of provider:
Phone: (508)793-3362
Fax: (508) 793-3708
Web page: http://www.holycross.edu/departments/economics/website/
More information through EDIRC

Related research

Keywords: starting point bias; contingent valuation; tort reform; classroom experiment; experimental economics;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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:hcx:wpaper:0509. 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: (Victor Matheson).

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.