Effects of Cheap Talk on Hypothetical Bias

Jihyeon Choi

Journal of Rural Development/Nongchon-Gyeongje, 2013, vol. 36, issue 4

Abstract: ‘Cheap talk’ has been proposed to reduce the hypothetical bias in value elicitation mechanisms. This study explores the effect of cheap talk in laboratory experiments by applying three preference elicitation methods; hypothetical ranking, hypothetical ranking with cheap talk, and non-hypothetical choice. Results indicate that the hypothetical willingness-to-pay (WTP) values are higher than non-hypothetical WTPs, however cheap talk was not effective at reducing hypothetical bias.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/330616/files/RE36-4-05.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:330616

DOI: 10.22004/ag.econ.330616

Access Statistics for this article

More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().