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Hypothetical Bias, Consequentiality and Choice Experiments

Author

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  • Craig D. Broadbent

    (Illinois Wesleyan University)

Abstract

The presence of hypothetical bias in stated preference methods has led many researchers to look for methods to ameliorate the bias. This paper investigates the use of a consequentiality question to calibrate stated preference data from a controlled laboratory experiment using a choice experimental framework. Results suggest evidence of hypothetical bias using a likelihood ratio test, however, when comparing marginal willingness to pay results statistical evidence of the bias is not found. The finding of equal marginal willingness to pay could be due to the high number of participants who perceived the survey as potentially consequential.

Suggested Citation

  • Craig D. Broadbent, 2012. "Hypothetical Bias, Consequentiality and Choice Experiments," Economics Bulletin, AccessEcon, vol. 32(3), pages 2490-2499.
    • Handle: RePEc:ebl:ecbull:eb-12-00414
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    References listed on IDEAS

    as
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    Cited by:

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    2. Malte Welling & Ewa Zawojska & Julian Sagebiel, 2022. "Information, Consequentiality and Credibility in Stated Preference Surveys: A Choice Experiment on Climate Adaptation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 257-283, May.
    3. Zawojska, Ewa & Gastineau, Pascal & Mahieu, Pierre-Alexandre & Cheze, Benoit & Paris, Anthony, 2021. "Measuring policy consequentiality perceptions in stated preference surveys," 2021 Annual Meeting, August 1-3, Austin, Texas 313977, Agricultural and Applied Economics Association.
    4. Zawojska, Ewa & Bartczak, Anna & Czajkowski, Mikotaj, 2017. "Disentangling impacts of payment and provision consequentiality and risk attitudes on stated preferences," Annual Meeting, 2017, June 18-21, Montreal, Canada 258602, Canadian Agricultural Economics Society.
    5. William Desvousges & Kristy Mathews & Kenneth Train, 2016. "From Curious to Pragmatically Curious: Comment on "From Hopeless to Curious? Thoughts on Hausman's "Dubious to Hopeless" Critique of Contingent Valuation"," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 174-182.
    6. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.

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    More about this item

    Keywords

    hypothetical bias; choice experiments; consequential;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H4 - Public Economics - - Publicly Provided Goods

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