IDEAS home Printed from
   My bibliography  Save this article

Social context, financial stakes and hypothetical bias: an induced value referendum experiment


  • Pallab Mozumder
  • Robert Berrens


This article investigates the effect of social context in an induced value, public good referendum experiment. In a split-sample treatment, social context is simulated by requiring participants to potentially have to disclose their vote to the group (voting disclosure) across both hypothetical and real settings. The experimental design also varies the cost (a coercive tax), and includes an uncertain level of benefit from the public good. The design allows investigation of the role of social context in both hypothetical and real referenda and its interaction with changes in the financial stakes involved (costs and potential benefits). Results show evidence of hypothetical bias, but also a social context effect that occurs in both real and hypothetical settings. This social context effect is larger than the effect of hypothetical bias, but is muted by the magnitude of costs and potential benefits. Hypothetical cases are also shown to be more prone to the social context effect.

Suggested Citation

  • Pallab Mozumder & Robert Berrens, 2011. "Social context, financial stakes and hypothetical bias: an induced value referendum experiment," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4487-4499.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4487-4499
    DOI: 10.1080/00036846.2010.491468

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


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

    Cited by:

    1. repec:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0028-0 is not listed on IDEAS
    2. Little, Joseph & Broadbent, Craig D. & Berrens, Robert P., 2012. "Meta-Analysis of the Probability of Disparity between Actual and Hypothetical Valuation Responses: Extension and Preliminary New Results," Western Economics Forum, Western Agricultural Economics Association, vol. 11(01).

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4487-4499. 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: (Chris Longhurst). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.