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Detection and mitigation of hypothetical bias in contingent valuation with an application to curbside recycling

Author

Listed:
  • David Aadland
  • Arthur Caplan

Abstract

In this paper, we use a unique curbside-recycling data set to test the effectiveness of “cheap talk” and “preference uncertainty” in mitigating hypothetical bias in contingent valuation. The sample includes two types of ouseholds—those located in communities with curbside recycling programs (mandatory or voluntary) and those in communities without curbside recycling. Using stated and revealed preference data, detect significant hypothetical bias. Cheap talk and preference-uncertainty controls are partially effective in mitigating the bias.

Suggested Citation

  • David Aadland & Arthur Caplan, 2001. "Detection and mitigation of hypothetical bias in contingent valuation with an application to curbside recycling," Working Papers 2001-09, Utah State University, Department of Economics.
  • Handle: RePEc:usu:wpaper:2001-09
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    File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2001-09.pdf
    File Function: First version, 2001
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    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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