Can a Repeated Opt-Out Reminder mitigate hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products

Mohammed H Alemu and Søren Olsen

European Review of Agricultural Economics, 2018, vol. 45, issue 5, 749-782

Abstract: In this paper, we test whether a Repeated Opt-Out Reminder (ROOR) can mitigate hypothetical bias in stated discrete choice experiments (DCE). The data originate from a field experiment concerning consumer preferences for a novel food product made from cricket flour. Utilising a between-subject design with three treatments, we find significantly higher marginal willingness-to-pay values in hypothetical than in nonhypothetical settings, confirming the presence of hypothetical bias. Comparing this to a hypothetical setting where the ROOR is introduced, we find that the ROOR effectively mitigates hypothetical bias for one attribute and significantly reduces it for the rest of the attributes.

Keywords: hypothetical bias; novel food; Repeated Opt-Out Reminder; willingness-to-pay (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (13)

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