A penny for your thoughts: Inducing truth-telling in stated preference elicitation
Lint Barrage and
Min Sok Lee
Economics Letters, 2010, vol. 106, issue 2, 140-142
Abstract:
Contingent valuation often induces hypothetical bias. In a laboratory experiment, we test three calibration mechanisms: cheap-talk, consequentialism, and a new mechanism, the Bayesian truth serum ("BTS"). We apply the BTS in a "faith-based" format: subjects are informed about the purpose and potential efficacy of the BTS, but not its theoretical foundations. We find that real and hypothetical responses differ significantly; real and consequentialist responses are statistically indistinguishable; cheap-talk and the BTS eliminate bias inconsistently; subject characteristics interact significantly with treatment.
Keywords: Bayesian; truth; serum; Cheap-talk; Contingent; valuation; Hypothetical; bias; Stated; preference (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (26)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:106:y:2010:i:2:p:140-142
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