Enhancing cheap talk scripts in choice experiments

Research output: Contribution to conferencePaperResearch

Hypoethetical bias in stated preference studies is an essential problem which reduces the validity of the obtained welfare estimates for non-market goods. In the attempt to mitigate hypothetical bias, a type of reminder known as Cheap Talk, has been applied in previous studies and found to overall eliminate some of the hypothetical bias. The present paper tests and addition to Cheap Talk, an Op-out Reminder. The Opt-Out Reminder is an objective short script presented prior to the choice sets, prompting the respondent to choose the opt-out alternative, if he/she finds the proposed policy generated alternatives in a choice set too expensive. The results sugggest that adding and Opt-Out Reminder to Cheap Talk can in fact reduce hypothetical bias even further and reduces some of the ineffectiveness of CT in relation to the survey bid range and experienced respondents
Original languageEnglish
Publication date2007
Number of pages30
Publication statusPublished - 2007
EventApplied Environmental Economics Conference (ENVECON) 2007 - London, United Kingdom
Duration: 23 Mar 2007 → …

Conference

ConferenceApplied Environmental Economics Conference (ENVECON) 2007
CountryUnited Kingdom
CityLondon
Period23/03/2007 → …

    Research areas

  • Former LIFE faculty - Cheap talk, Opu-out reminder, Choice Experiments, Non-market valuation

ID: 8065158