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Social psychology and environmental economics : a new look at ex ante corrections of biased preference evaluation

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Abstract

Environmental economics is now a long standing field of research ; much has been learned on how environmental policy can use incentives to drive individual behaviors. Among the many examples, preference elicitation is the most discussed case in which incentives fail to accurately implement efficient behavior. Using this as our motivating example, herein we explore the cross-fertilization between environmental economics and social psychology. We first review how the lessons drawn from social psychology helped address the hypothetical bias issue. We then turn to the future of this process by focusing on how cheap talk scripts influence preference elicitation. Our experimental results shows CT scripts work through persuasion – i.e. changes mind, but poorly changes actions. in that sense, preference elicitation still lacks a way of making communication binding – i.e. a way to alter intrinsic motivation of subjects to behave truthfully.

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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 10016.

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Length: 32 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:mse:cesdoc:10016

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Keywords: Social psychology; commitment; persuasive communication; preference elicitation.;

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Citations

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Cited by:
  1. SABRINA TEYSSIER & Fabrice Etile & Pierre Combris, 2012. "Social and self-Image concerns in fair-trade consumption: Evidence from experimental auctions for chocolate," Working Papers 168750, Institut National de la Recherche Agronomique, France.
  2. repec:hal:wpaper:halshs-00490448 is not listed on IDEAS
  3. Börger, Tobias, 2011. "A direct test of socially desirable responding in contingent valuation interviews," FZID Discussion Papers 40-2011, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  4. Bosworth Ryan & Taylor Laura O., 2012. "Hypothetical Bias in Choice Experiments: Is Cheap Talk Effective at Eliminating Bias on the Intensive and Extensive Margins of Choice?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-28, December.
  5. Börger, Tobias, 2013. "Keeping up appearances: Motivations for socially desirable responding in contingent valuation interviews," Ecological Economics, Elsevier, vol. 87(C), pages 155-165.
  6. de Magistris, Tiziana & Pascucci, Stefano, 2012. "Consumers´ preferences for the millennium bugs. Does “solemn oath” mitigate the hypothetical bias in choice experiment?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124834, Agricultural and Applied Economics Association.
  7. Dominique Ami & Frédéric Aprahamian & Olivier Chanel & Stephane Luchini, 2009. "A Test Of Cheap Talk In Different Hypothetical Contexts: The Case Of Air Pollution," Working Papers halshs-00382511, HAL.
  8. Nicolas Jacquemet & Robert-Vincent Joule & Stéphane Luchini & Jason F. Shogren, 2009. "Preference Elicitation under Oath," Documents de travail du Centre d'Economie de la Sorbonne 09043, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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  10. Shogren, Jason F., 2012. "WAEA Keynote Address Behavioral Environmental Economics: Money Pumps & Nudges," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), December.

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