Using ex ante approaches to obtain credible signals for value in contingent markets: Evidence from the field
While contingent valuation remains the only option available for measurement of total economic value of nonmarketed goods, the method has been criticized due to its hypothetical nature. We analyze field experimental data to evaluate two ex ante approaches to attenuating hypothetical bias, directly comparing value statements across four distinct referenda: hypothetical, "cheap talk," "consequential," and real. Our empirical evidence suggests two major findings: hypothetical responses are significantly different from real responses; and responses in the consequential and cheap talk treatments are statistically indistinguishable from real responses. We review the potential for each method to produce reliable results in the field.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 2003.
"Cvm-X: Calibrating Contingent Values with Experimental Auction Markets,"
Staff General Research Papers
11935, Iowa State University, Department of Economics.
- John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
- Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James, 1998. "Cvm-X: Calibrating Contingent Values with Experimental Auction Markets," Staff General Research Papers 1311, Iowa State University, Department of Economics.
- Poe, Gregory L. & Clark, Jeremy & Schulze, William D., 1997. "Can Hypothetical, Questions Predict Actual, Participation In Public Programs? A Field Validity Test Using A Provision Point Mechanism," Working Papers 7264, Cornell University, Department of Applied Economics and Management.
- Smith, V. Kerry & Mansfield, Carol, 1996.
"Buying Time: Real and Hypothetical Offers,"
dp-97-09, Resources For the Future.
- John A. List, 2001.
"Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1498-1507, December.
- John List, 2001. "Do explicit warnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sportscards," Framed Field Experiments 00163, The Field Experiments Website.
- Carson, Richard T & Groves, Theodore, 2010.
"Incentive and Information Properties of Preference Questions,"
University of California at San Diego, Economics Working Paper Series
qt88d8644g, Department of Economics, UC San Diego.
- Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
- Powe, N.A. & Garrod, G.D. & McMahon, P.L., 2005. "Mixing methods within stated preference environmental valuation: choice experiments and post-questionnaire qualitative analysis," Ecological Economics, Elsevier, vol. 52(4), pages 513-526, March.
- Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 73-105, February.
- Jason Shogren & John List, 2002.
"Calibration of willingness-to-accept,"
Framed Field Experiments
00182, The Field Experiments Website.
- Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005.
"The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study,"
Journal of Environmental Economics and Management,
Elsevier, vol. 49(2), pages 330-342, March.
- Bulte, E.H. & Gerking, S.D. & List, J.A. & de Zeeuw, A.J., 2005. "The effect of varying the causes of environmental problems on stated WTP values : Evidence from a field study," Other publications TiSEM f7559812-40bb-4595-b410-2, Tilburg University, School of Economics and Management.
- Aart de Zeeuw & Erwin Bulte & John List & Shelby Gerking, 2004. "The effect of varying the causes of environmental problems on stated wtp values: Evidence from a field study," Framed Field Experiments 00134, The Field Experiments Website.
- David Bjornstad & Ronald Cummings & Laura Osborne, 1997. "A Learning Design for Reducing Hypothetical Bias in the Contingent Valuation Method," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 207-221, October.
- David Aadland & Arthur J. Caplan, 2003. "Willingness to Pay for Curbside Recycling with Detection and Mitigation of Hypothetical Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 492-502.
- Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
- Taylor, Laura O., 1998. "Incentive Compatible Referenda And The Valuation Of Environmental Goods," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
When requesting a correction, please mention this item's handle: RePEc:feb:framed:00168. 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: (Joe Seidel)
If references are entirely missing, you can add them using this form.