Reducing hypothetical bias in choice experiments : testing an opt-out reminder

Jacob Ladenburg; Søren Bøye Olsen; Rasmus Christian Fejer Nielsen

Reducing hypothetical bias in choice experiments : testing an opt-out reminder

Jacob Ladenburg, Søren Bøye Olsen, Rasmus Christian Fejer Nielsen

Abstract

Hypothetical 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 an addition to Cheap Talk, an Opt-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 suggest that adding an 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 language	English
Publication date	2007
Number of pages	30
Publication status	Published - 2007
Event	EAERE 2007 Annual Conference - Thessaloniki, Greece Duration: 27 Jun 2007 → 30 Jun 2007 Conference number: 15

Conference

Conference	EAERE 2007 Annual Conference
Number	15
Country/Territory	Greece
City	Thessaloniki
Period	27/06/2007 → 30/06/2007

Keywords

Former LIFE faculty
survey mode effect
representativity
choice experiment
willingness-to-pay
random parameters
mixed logit

Access to Document

http://www.eaere2007.gr/index.php?option=program&slot=27&session=10&paper=100

Cite this

@conference{7b86c4a0a1c211ddb6ae000ea68e967b,

title = "Reducing hypothetical bias in choice experiments : testing an opt-out reminder",

abstract = "Hypothetical 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 an addition to Cheap Talk, an Opt-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 suggest that adding an 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. ",

keywords = "Former LIFE faculty, survey mode effect, representativity, choice experiment, willingness-to-pay, random parameters, mixed logit",

author = "Jacob Ladenburg and Olsen, {S{\o}ren B{\o}ye} and Nielsen, {Rasmus Christian Fejer}",

year = "2007",

language = "English",

note = "EAERE 2007 Annual Conference ; Conference date: 27-06-2007 Through 30-06-2007",

}

TY - CONF

T1 - Reducing hypothetical bias in choice experiments

T2 - EAERE 2007 Annual Conference

AU - Ladenburg, Jacob

AU - Olsen, Søren Bøye

AU - Nielsen, Rasmus Christian Fejer

N1 - Conference code: 15

PY - 2007

Y1 - 2007

N2 - Hypothetical 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 an addition to Cheap Talk, an Opt-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 suggest that adding an 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.

AB - Hypothetical 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 an addition to Cheap Talk, an Opt-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 suggest that adding an 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.

KW - Former LIFE faculty

KW - survey mode effect

KW - representativity

KW - choice experiment

KW - willingness-to-pay

KW - random parameters

KW - mixed logit

M3 - Paper

Y2 - 27 June 2007 through 30 June 2007

ER -

Reducing hypothetical bias in choice experiments : testing an opt-out reminder

Abstract

Conference

Keywords

Access to Document

Fingerprint

Cite this