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

Listed author(s):
  • David Aadland
  • Arthur Caplan

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.

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File Function: First version, 2001
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Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2001-09.

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Length: 31 pages
Date of creation: Feb 2001
Handle: RePEc:usu:wpaper:2001-09
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