EFFECTS OF CHEAP TALK ON CONSUMER WILLINGNESS-TO-PAY FOR GOLDEN RICE

Jayson Lusk

No 19597, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: A large body of literature suggests individuals behave differently when responding to hypothetical valuation questions than when actual payment is required. Such findings have generated a great deal of skepticism over the use of the contingent valuation method and benefit measures derived from it. Recently, a new method, cheap talk, has been proposed to eliminate the potential bias in hypothetical valuation questions. Cheap talk refers to process of explaining hypothetical bias to individuals prior to asking a valuation question. This study explores the effect of cheap talk in a mass mail survey using a conventional value elicitation technique. Results suggest that cheap talk was effective at reducing willingness-to-pay for most survey participants. However, consistent with previous research, cheap talk did not reduce willingness-to-pay for consumers who were knowledgeable of the good evaluated.

Keywords: Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 39
Date: 2002
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Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19597

DOI: 10.22004/ag.econ.19597

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