IDEAS home Printed from https://ideas.repec.org/p/hcx/wpaper/0509.html
   My bibliography  Save this paper

Rationality, Tort Reform and Contingent Valuation: A Classroom Experiment in Starting Point Bias

Author

Listed:
  • Victor Matheson

    () (Department of Economics, College of the Holy Cross)

Abstract

This simple classroom experiment demonstrates the existence of starting point bias. Asked to place a dollar value on a non-market good such as the loss of a limb or the destruction of a wetland, students place a much smaller value on the loss if a small value is first suggested by the questioner while placing a significantly higher value on the loss when a large value is originally suggested. This experiment can be used in theory classes to demonstrate the limits of individual rationality or in applied classes in law or environmental economics in relation to tort reform or contingent valuation.

Suggested Citation

  • Victor Matheson, 2005. "Rationality, Tort Reform and Contingent Valuation: A Classroom Experiment in Starting Point Bias," Working Papers 0509, College of the Holy Cross, Department of Economics.
  • Handle: RePEc:hcx:wpaper:0509
    as

    Download full text from publisher

    File URL: http://web.holycross.edu/RePEc/hcx/HC0509-Matheson_StartingPoint.pdf
    File Function: Original version presented at Western Economic Association Meetings, Vancouver, BC, July 2004
    Download Restriction: no

    More about this item

    Keywords

    starting point bias; contingent valuation; tort reform; classroom experiment; experimental economics;

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:hcx:wpaper:0509. 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: (Victor Matheson). General contact details of provider: http://edirc.repec.org/data/deholus.html .

    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.