On a way to overcome strategic overbidding in open-ended stated preference surveys: A recoding approach

Ewa Zawojska, Pierre-Alexandre Mahieu (), Romain Crastes and Jordan Louviere
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Romain Crastes: University of Leeds, Centre of Choice Modelling

No 2016-34, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Stated preference (SP) surveys often use open-ended questions to elicit individuals’ willingness-to-pay values for goods, services, or policy projects. However, an open-ended format may encourage strategic overbidding, and so lead to biased value estimates. We propose a new approach, based on economic theory, to limit strategic overbidding in open-ended SP surveys: prior to the valuation question, respondents are told that their insincere responses will be (unfavourably) recoded as zeros. We develop a theoretical model and verify its predictions in a field SP study. We find that the approach works: respondents aware of subsequent unfavourable recoding of their insincere answers state significantly lower willingness-to-pay values.

Keywords: stated preferences; contingent valuation; open-ended survey; strategic overbidding; recoding approach (search for similar items in EconPapers)
JEL-codes: C80 D01 D11 D12 D61 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2016
New Economics Papers: this item is included in nep-dcm, nep-exp and nep-upt
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http://www.wne.uw.edu.pl/index.php/download_file/3200/ First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2016-34

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