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The influence of cheap talk on willingness-to-pay ranges: some empirical evidence from a contingent valuation study

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  • Pierre-Alexandre Mahieu
  • Pere Riera
  • Marek Giergiczny

Abstract

Different instruments have been developed to mitigate the hypothetical bias in contingent valuation surveys. One, labelled ‘cheap talk’, warns participants about the hypothetical bias phenomenon prior to the valuation question. This paper investigates the effects of cheap talk on willingness-to-pay ranges, in a case study on remote mountain lakes. An open-ended follow-up question is added to a payment ladder to elicit the maximum amount an individual would definitely pay and the minimum amount above which they would definitely refuse to pay. The main conclusion is that cheap talk has no influence on the width of people’s willingness-to-pay range, but is effective at lowering the mean willingness-to-pay.

Suggested Citation

  • Pierre-Alexandre Mahieu & Pere Riera & Marek Giergiczny, 2012. "The influence of cheap talk on willingness-to-pay ranges: some empirical evidence from a contingent valuation study," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(6), pages 753-763, September.
  • Handle: RePEc:taf:jenpmg:v:55:y:2012:i:6:p:753-763
    DOI: 10.1080/09640568.2011.626524
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    Citations

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    Cited by:

    1. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    2. Hermann Donfouet & P. Jeanty & P.-A. Mahieu, 2014. "Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance," Empirical Economics, Springer, vol. 46(1), pages 317-328, February.
    3. Ngouhouo Poufoun, Jonas & Abildtrup, Jens & Sonwa, Dénis Jean & Delacote, Philippe, 2016. "The value of endangered forest elephants to local communities in a transboundary conservation landscape," Ecological Economics, Elsevier, vol. 126(C), pages 70-86.
    4. Voltaire, Louinord & Pirrone, Claudio & Bailly, Denis, 2013. "Dealing with preference uncertainty in contingent willingness to pay for a nature protection program: A new approach," Ecological Economics, Elsevier, vol. 88(C), pages 76-85.
    5. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    6. 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.
    7. Braun, Carola & Rehdanz, Katrin & Schmidt, Ulrich, 2016. "Validity of Willingness to Pay Measures under Preference Uncertainty," Open Access Publications from Kiel Institute for the World Economy 141320, Kiel Institute for the World Economy (IfW).
    8. Stephane Hess & Marek Giergiczny, 2015. "Intra-respondent Heterogeneity in a Stated Choice Survey on Wetland Conservation in Belarus: First Steps Towards Creating a Link with Uncertainty in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(3), pages 327-347, March.

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