EconPapers    
Economics at your fingertips  
 

The relative performance of ex‐ante and ex‐post measures to mitigate hypothetical and strategic bias in a stated preference study

Sergio Colombo, Wiktor Budziński, Mikolaj Czajkowski () and Klaus Glenk

Journal of Agricultural Economics, 2022, vol. 73, issue 3, 845-873

Abstract: Bias related to the hypothetical setting remains controversial regarding the reliability and validity of value estimates from discrete choice experiments (DCEs). This has motivated a large body of literature to investigate approaches for mitigating hypothetical and strategic bias. Our study provides further evidence to inform this debate by testing whether a combination of ex‐ante or ex‐post mitigation strategies might be effective in reducing bias in DCEs. Specifically, we employ individual and multiple ex‐ante reminders alongside an ex‐post data treatment and analyse how their individual or joint use affects willingness to pay (WTP) estimates. The econometric analysis makes use of innovative semi‐parametric logit‐mixed logit in addition to the state‐of‐the‐art mixed logit model. The empirical case study focuses on preferences for the environmental and social impacts of organic olive production. By comparing the three experimental treatments with a control treatment, we test whether ex‐ante cheap talk, a reminder of the project's relative spatial extent, or a combination of both affect stated WTP. In addition, we use an ex‐post data treatment to correct WTP estimates. WTP estimates of treatments related to ex‐ante mitigation strategies did not differ significantly from those obtained from a control treatment with standard budget constraint reminders. However, the ex‐post approach results in a significant reduction in mean WTP estimates and is used to investigate whether the observed choice inconsistencies are due to unintentional errors or strategic behaviour. We argue that ex‐post mechanisms deserve greater attention and highlight the need to distinguish strategic behaviour from other sources of hypothetical bias.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/1477-9552.12484

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:bla:jageco:v:73:y:2022:i:3:p:845-873

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-857X

Access Statistics for this article

Journal of Agricultural Economics is currently edited by David Harvey

More articles in Journal of Agricultural Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2023-02-03
Handle: RePEc:bla:jageco:v:73:y:2022:i:3:p:845-873