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Detection and mitigation of hypothetical bias in contingent valuation with an application to curbside recycling

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  • David Aadland
  • Arthur Caplan

Abstract

In this paper, we use a unique curbside-recycling data set to test the effectiveness of “cheap talk” and “preference uncertainty” in mitigating hypothetical bias in contingent valuation. The sample includes two types of ouseholds—those located in communities with curbside recycling programs (mandatory or voluntary) and those in communities without curbside recycling. Using stated and revealed preference data, detect significant hypothetical bias. Cheap talk and preference-uncertainty controls are partially effective in mitigating the bias.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2001-09.pdf
File Function: First version, 2001
Download Restriction: no

Bibliographic Info

Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2001-09.

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Length: 31 pages
Date of creation: Feb 2001
Date of revision:
Handle: RePEc:usu:wpaper:2001-09

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