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Hypothetical bias, cheap talk, and stated willingness to pay for health care

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  • Özdemir, Semra
  • Johnson, F. Reed
  • Hauber, A. Brett

Abstract

Subjects with rheumatoid arthritis (RA) enrolled in an online panel were asked to evaluate pairs of treatment alternatives with different attributes. Half of the sample saw a cheap-talk text. Preference parameters were estimated using random-parameters logit models to account for unobserved taste heterogeneity. The models also were estimated in willingness-to-pay (WTP) space instead of conventional utility space. Cheap talk not only affected the coefficient on the cost attribute, but also preferences for other attributes. WTP estimates were generally lower in cheap talk sample, except for the most important attribute and a 2-level attribute. Subjects who were presented with cheap talk discriminated between the adjoning attribute levels better than the subjects in the control sample.

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  • Özdemir, Semra & Johnson, F. Reed & Hauber, A. Brett, 2009. "Hypothetical bias, cheap talk, and stated willingness to pay for health care," Journal of Health Economics, Elsevier, vol. 28(4), pages 894-901, July.
  • Handle: RePEc:eee:jhecon:v:28:y:2009:i:4:p:894-901
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    References listed on IDEAS

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    Cited by:

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    4. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    5. Menegaki, Angeliki, N. & Olsen, Søren Bøye & Tsagarakis, Konstantinos P., 2016. "Towards a common standard – A reporting checklist for web-based stated preference valuation surveys and a critique for mode surveys," Journal of choice modelling, Elsevier, vol. 18(C), pages 18-50.
    6. Haghani, Milad & Sarvi, Majid, 2018. "Hypothetical bias and decision-rule effect in modelling discrete directional choices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 361-388.
    7. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson L. & Nayga, Rodolfo M. Jr., 2015. "Reference dependence, consequentiality and social desirability in value elicitation: A study of fair labor labeling," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202705, European Association of Agricultural Economists.
    8. Arne Hole & Julie Kolstad, 2012. "Mixed logit estimation of willingness to pay distributions: a comparison of models in preference and WTP space using data from a health-related choice experiment," Empirical Economics, Springer, vol. 42(2), pages 445-469, April.
    9. Verity Watson & Frauke Becker & Esther de Bekker‐Grob, 2017. "Discrete Choice Experiment Response Rates: A Meta‐analysis," Health Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 810-817, June.
    10. Liu, Tzu-Ming, 2017. "Testing on-site sampling correction in discrete choice experiments," Tourism Management, Elsevier, vol. 60(C), pages 439-441.
    11. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    12. You, Wen & Hashemi, Ali & Boyle, Kevin J. & Parmeter, Christopher F. & Kanninen, Barbara & Estabrooks, Paul A., 2011. "Incentive Design to Enhance the Reach of Weight Loss Program," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103669, Agricultural and Applied Economics Association.
    13. Andres Silva & Rodolfo Nayga & Benjamin Campbell & John Park, 2012. "Can perceived task complexity influence cheap talk's effectiveness in reducing hypothetical bias in stated choice studies?," Applied Economics Letters, Taylor & Francis Journals, vol. 19(17), pages 1711-1714.
    14. Eric Andrew Finkelstein & Carol Mansfield & Dallas Wood & Brent Rowe & Junxing Chay & Semra Ozdemir, 2017. "Trade-Offs Between Civil Liberties And National Security: A Discrete Choice Experiment," Contemporary Economic Policy, Western Economic Association International, vol. 35(2), pages 292-311, April.
    15. F. Reed Johnson & Ateesha F. Mohamed & Semra Özdemir & Deborah A. Marshall & Kathryn A. Phillips, 2011. "How does cost matter in health‐care discrete‐choice experiments?," Health Economics, John Wiley & Sons, Ltd., vol. 20(3), pages 323-330, March.
    16. Mandy Ryan & Nicolas Krucien & Frouke Hermens, 2018. "The eyes have it: Using eye tracking to inform information processing strategies in multi‐attributes choices," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 709-721, April.
    17. Hui‐Chu Lang & Koyin Chang & Yung‐Hsiang Ying, 2012. "Quality Of Life, Treatments, And Patients' Willingness To Pay For A Complete Remission Of Cervical Cancer In Taiwan," Health Economics, John Wiley & Sons, Ltd., vol. 21(10), pages 1217-1233, October.
    18. Haghani, Milad & Sarvi, Majid, 2019. "Laboratory experimentation and simulation of discrete direction choices: Investigating hypothetical bias, decision-rule effect and external validity based on aggregate prediction measures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 134-157.
    19. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson & Nayga, Rodolfo M., 2015. "Fair farming: Preferences for fair labor certification using four elicitation methods," MPRA Paper 62546, University Library of Munich, Germany.
    20. Landmann, D. & Feil, J.-H. & Lagerkvist, C.J. & Otter, V., 2018. "Designing capacity development activities of small-scale farmers in developing countries based on discrete choice experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277738, International Association of Agricultural Economists.
    21. Frauke Becker & Nana Anokye & Esther W de Bekker-Grob & Ailish Higgins & Clare Relton & Mark Strong & Julia Fox-Rushby, 2018. "Women’s preferences for alternative financial incentive schemes for breastfeeding: A discrete choice experiment," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-19, April.
    22. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.

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