Cheap Talk Reconsidered: New Evidence from CVM

David Aadland () and Arthur Josef Caplan

No 2002-20, Working Papers from Utah State University, Department of Economics

Abstract: Two recent studies have shown that “cheap talk” is an effective means of eliminating positive hypothetical bias in experimental and field-auction settings. We further investigate the ability of cheap talk to mitigate positive hypothetical bias in a CVM phone survey administered to over 4,000 households. Positive hypothetical bias is first detected in our data by contrasting revealed and stated preference information. However, a short, neutral cheap-talk script appears to exacerbate rather than mitigate the bias. Based on this and mixed evidence from earlier studies, we suggest caution in using cheap talk as an ex ante control for hypothetical bias.

Keywords: Ncheap talk; contingent valuation; hypothetical bias (search for similar items in EconPapers)
JEL-codes: Q26 C35 (search for similar items in EconPapers)
Date: 2002-12

Downloads: (external link)
http://www.econ.usu.edu/RePEc/usu/pdf/ERI2002-20.pdf First version, 2002 (application/pdf)

Related works:
Journal Article: Cheap talk reconsidered: New evidence from CVM (2006)
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