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

David Aadland () and Arthur Josef Caplan ()

No 2001-09, Working Papers from Utah State University, Department of Economics

Abstract: 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.

JEL-codes: C35 D12 (search for similar items in EconPapers)
Date: 2001-02
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ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2001-09.pdf First version, 2001 (application/pdf)

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Persistent link: http://EconPapers.repec.org/RePEc:usu:wpaper:2001-09

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