Reducing Status Quo Bias in Choice Experiments – An Application of a Protest Reduction Entreaty

Ole Bonnichsen () and Jacob Ladenburg
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Ole Bonnichsen: Institute of Food and Resource Economics, University of Copenhagen

No 2010/7, IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics

Abstract: In stated preference literature, the tendency to choose the alternative representing the status quo situation seems to exceed real life status quo effects. Accordingly, status quo bias can be a problem. In Choice Experiments, status quo bias is found to be strongly correlated with protest attitudes toward the cost attribute. If economic values are to be elicited, this problem is difficult to remedy. In a split sample framework we test a novel ex-ante entreaty aimed specifically at the cost attribute and find that it effectively reduces status quo bias and improves the internal validity of the hypothetical preferences.

Keywords: Choice Experiment; Status Quo Bias; Entreaty; Stated Preference (search for similar items in EconPapers)
JEL-codes: C10 C51 C52 C90 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-06
New Economics Papers: this item is included in nep-cbe, nep-dcm, nep-ecm and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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