Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Truth, the Whole Truth, and Nothing but the Truth A Multiple Country Test of an Oath Script

Contents:

Author Info

  • Fredrik Carlsson

    ()
    (Department of Economics, University of Gothenburg)

  • Mitesh Kataria

    ()
    (Max Planck Institute of Economics, Jena)

  • Alan Krupnick

    ()
    (Resources for the Future, Washington)

  • Elina Lampi

    ()
    (Department of Economics, University of Gothenburg)

  • Asa Löfgren

    ()
    (Department of Economics, University of Gothenburg)

  • Ping Qin

    ()
    (Peking University, College of Environmental Sciences and Engineering)

  • Thomas Sterner

    ()
    (Department of Economics, University of Gothenburg)

  • Susie Chung

    ()
    (Resources for the Future, Washington)

Abstract

Hypothetical bias is one of the main issues bedeviling the field of nonmarket valuation. The general criticism is that survey responses reflect how people would like to behave, rather than how they actually behave. In our study of climate change and emissions reductions, we took advantage of the increasing bulk of evidence from psychology and economics that addresses the effects of making promises, in order to investigate the effect of an oath script in a contingent valuation survey. The survey was conducted in Sweden and China, and its results indicate that an oath script has significant effects on respondent behavior in answering willingness-to-pay (WTP) questions, some of which vary by country. In both countries, the share of zero WTP responses and extremely high WTP responses decreases when an oath script is used, which also results in lower variance. In China, the oath script also reduces the average WTP, cutting it by half in certain instances. We also found that the oath script has different impacts on various respondent groups. For example, without the oath script, Communist party members in China are more likely than others to have a positive WTP for emissions reductions, but with the oath script, there is no longer any difference between the groups.

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://pubdb.wiwi.uni-jena.de/pdf/wp_2010_076.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-076.

as in new window
Length:
Date of creation: 09 Nov 2010
Date of revision:
Handle: RePEc:jrp:jrpwrp:2010-076

Contact details of provider:
Postal: Carl-Zeiss-Strasse 3, 07743 JENA
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC

Related research

Keywords: Oath script; hypothetical bias; willingness to pay;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
  2. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2007. "Does context matter more for hypothetical than for actual contributions? Evidence from a natural field experiment," Working Papers in Economics 251, University of Gothenburg, Department of Economics.
  3. Harvey, A C, 1976. "Estimating Regression Models with Multiplicative Heteroscedasticity," Econometrica, Econometric Society, vol. 44(3), pages 461-65, May.
  4. Joseph Cook & Dale Whittington & Do Gia Canh & F. Reed Johnson & Andrew Nyamete, 2007. "Reliability Of Stated Preferences For Cholera And Typhoid Vaccines With Time To Think In Hue, Vietnam," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 100-114, 01.
  5. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  6. Bateman, Ian J. & Burgess, Diane & Hutchinson, W. George & Matthews, David I., 2008. "Learning design contingent valuation (LDCV): NOAA guidelines, preference learning and coherent arbitrariness," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 127-141, March.
  7. Mariah Ehmke & Jayson Lusk & John List, 2008. "Is hypothetical bias a universal phenomenon? A multinational investigation," Artefactual Field Experiments 00041, The Field Experiments Website.
  8. Tore Ellingsen & Magnus Johannesson, 2004. "Promises, Threats and Fairness," Economic Journal, Royal Economic Society, vol. 114(495), pages 397-420, 04.
  9. Whittington, Dale & Smith, V. Kerry & Okorafor, Apia & Okore, Augustine & Liu, Jin Long & McPhail, Alexander, 1992. "Giving respondents time to think in contingent valuation studies: A developing country application," Journal of Environmental Economics and Management, Elsevier, vol. 22(3), pages 205-225, May.
  10. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, 03.
  11. Fredrik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Åsa Löfgren & Ping Qin & Susie Chun & Thomas Sterner, 2012. "Paying for Mitigation: A Multiple Country Study," Land Economics, University of Wisconsin Press, vol. 88(2), pages 326-340.
  12. repec:hal:cesptp:halshs-00731244 is not listed on IDEAS
  13. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
  14. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
  15. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2008. "Full title Does Context Matter More for Hypothetical Than for Actual Contributions? Evidence from a Natural Field Experiment," Discussion Papers dp-08-02-efd, Resources For the Future.
  16. 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, vol. 89(3), pages 649-665, June.
  17. Johannesson, Magnus, et al, 1999. "Calibrating Hypothetical Willingness to Pay Responses," Journal of Risk and Uncertainty, Springer, vol. 18(1), pages 21-32, April.
  18. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer, vol. 13(1), pages 75-98, March.
  19. repec:hal:cesptp:halshs-00490448 is not listed on IDEAS
  20. Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
  21. Hoffmann, Sandra & Qin, Ping & Krupnick, Alan & Badrakh, Burmaajav & Batbaatar, Suvd & Altangerel, Enkhjargal & Sereeter, Lodoysamba, 2012. "The willingness to pay for mortality risk reductions in Mongolia," Resource and Energy Economics, Elsevier, vol. 34(4), pages 493-513.
  22. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
  23. Joseph Cook, 2007. "Reliability Of Stated Preferences For Cholera And Typhoid Vaccines With Time To Think In Hue, Vietnam," EEPSEA Special and Technical Paper sp200701s1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 2007.
  24. Nicolas Jacquemet & Robert-Vincent Joule & Stephane Luchini & Jason Shogren, 2013. "Preference Elicitation under Oath," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00731244, HAL.
  25. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
  26. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-66, March.
  27. Jayson L. Lusk & F. Bailey Norwood, 2009. "An Inferred Valuation Method," Land Economics, University of Wisconsin Press, vol. 85(3), pages 500-514.
  28. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004. "Using Cheap-Talk as a Test of Validity in Choice Experiments," Working Papers in Economics 128, University of Gothenburg, Department of Economics.
  29. Christoph Vanberg, 2008. "Why Do People Keep Their Promises? An Experimental Test of Two Explanations -super-1," Econometrica, Econometric Society, vol. 76(6), pages 1467-1480, November.
  30. Carson, Richard T & Groves, Theodore, 2010. "Incentive and Information Properties of Preference Questions," University of California at San Diego, Economics Working Paper Series qt88d8644g, Department of Economics, UC San Diego.
  31. 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, vol. 94(3), pages 741-752, June.
  32. David Aadland & Arthur J. Caplan, 2003. "Willingness to Pay for Curbside Recycling with Detection and Mitigation of Hypothetical Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 492-502.
  33. Day, Brett & Pinto Prades, Jose-Luis, 2010. "Ordering anomalies in choice experiments," Journal of Environmental Economics and Management, Elsevier, vol. 59(3), pages 271-285, May.
  34. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
  35. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November.
  36. Cummings, Ronald G, et al, 1997. "Are Hypothetical Referenda Incentive Compatible?," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 609-21, June.
  37. repec:hal:cesptp:halshs-00396721 is not listed on IDEAS
  38. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
  39. repec:hal:wpaper:halshs-00490448 is not listed on IDEAS
  40. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hermann Pythagore Pierre Donfouet & Pierre-Alexandre Mahieu & Eric Malin, 2011. "Using Respondents’ Uncertainty Scores to Mitigate Hypothetical Bias in Community-Based Health Insurance Studies," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201129, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  2. Mitesh Kataria & Fabian Winter, 2012. "Third Party Assessments in Trust Problems with Conflict of Interest: An Experiment on the Effects of Promises," Jena Economic Research Papers 2012-067, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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:jrp:jrpwrp:2010-076. 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: (Markus Pasche).

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.