Can a Repeated Opt-Out Reminder mitigate hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products

TY - JOUR

T1 - Can a Repeated Opt-Out Reminder mitigate hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products

AU - Alemu, Mohammed Hussen

AU - Olsen, Søren Bøye

PY - 2018/12/1

Y1 - 2018/12/1

N2 - In this paper, we test whether a Repeated Opt-Out Reminder (ROOR) can mitigate hypothetical bias in stated discrete choice experiments (DCE). The data originate from a field experiment concerning consumer preferences for a novel food product made from cricket flour. Utilising a between-subject design with three treatments, we find significantly higher marginal willingness-to-pay values in hypothetical than in nonhypothetical settings, confirming the presence of hypothetical bias. Comparing this to a hypothetical setting where the ROOR is introduced, we find that the ROOR effectively mitigates hypothetical bias for one attribute and significantly reduces it for the rest of the attributes.

AB - In this paper, we test whether a Repeated Opt-Out Reminder (ROOR) can mitigate hypothetical bias in stated discrete choice experiments (DCE). The data originate from a field experiment concerning consumer preferences for a novel food product made from cricket flour. Utilising a between-subject design with three treatments, we find significantly higher marginal willingness-to-pay values in hypothetical than in nonhypothetical settings, confirming the presence of hypothetical bias. Comparing this to a hypothetical setting where the ROOR is introduced, we find that the ROOR effectively mitigates hypothetical bias for one attribute and significantly reduces it for the rest of the attributes.

U2 - 10.1093/erae/jby009

DO - 10.1093/erae/jby009

M3 - Journal article

SN - 0165-1587

VL - 45

SP - 749

EP - 782

JO - European Review of Agricultural Economics

JF - European Review of Agricultural Economics

IS - 5

ER -