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Using Cheap-Talk as a Test of Validity in Choice Experiments

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Author Info

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Frykblom, Peter

    (Department of Economics, Appalachian State University)

  • Lagerkvist, Carl-Johan

    ()
    (Department of Economics, Swedish University of Agricultural Sciences)

Abstract

In two experiments on the choice of consumer goods, the estimated marginal willingness to pay for food are found to be lower in the survey version with cheap talk. Our test can be seen as a test of hypothetical bias. This implies we cannot reject the hypothesis of a hypothetical bias for marginal WTP in choice experiments.

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File URL: http://hdl.handle.net/2077/2792
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 128.

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Length: 11 pages
Date of creation: 12 Mar 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0128

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: hypothetical WTP; cheap talk; incentive compatibility;

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References

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  1. John List & Paramita Sinha & Michael Taylor, 2006. "Using choice experiments to value non-market goods and services: Evidence from field experiments," Natural Field Experiments 00278, The Field Experiments Website.
  2. Bulte, E.H. & Gerking, S.D. & List, J.A. & Zeeuw, A.J. de, 2005. "The effect of varying the causes of environmental problems on stated values: Evidence from a field study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-167602, Tilburg University.
  3. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
  4. Johansson-Stenman , Olof & Svedsäter, Henrik, 2003. "Self Image And Choice Experiments: Hypothetical And Actual Willingness To Pay," Working Papers in Economics, University of Gothenburg, Department of Economics 94, University of Gothenburg, Department of Economics.
  5. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
  6. Erwin Bulte & Shelby Gerking & John List & Aart de Zeeuw, 2004. "The effect of varying the causes of environmental problems on stated wtp values: Evidence from a field study," Framed Field Experiments 00134, The Field Experiments Website.
  7. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  8. 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, American Economic Association, vol. 89(3), pages 649-665, June.
  9. 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.
  10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521766555.
  11. repec:feb:artefa:0067 is not listed on IDEAS
  12. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  13. 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, American Economic Association, vol. 94(3), pages 741-752, June.
  14. Cameron, Trudy Ann & Poe, Gregory L. & Ethier, Robert G. & Schulze, William D., 2002. "Alternative Non-market Value-Elicitation Methods: Are the Underlying Preferences the Same?," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 391-425, November.
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