Reducing hypothetical bias in choice experiments : testing an opt-out reminder

Research output: Contribution to conferencePaperResearch

Jacob Ladenburg, Søren Bøye Olsen, Rasmus Christian Fejer Nielsen

Hypothetical bias in stated preference studies is an essential problem which reduces the validity of the obtained welfare estimates for non-market goods. In the attempt to mitigate hypothetical bias, a type of reminder known as Cheap Talk, has been applied in previous studies and found to overall eliminate some of the hypothetical bias. The present paper tests an addition to Cheap Talk, an Opt-Out Reminder. The Opt-Out Reminder is an objective short script presented prior to the choice sets, prompting the respondent to choose the opt-out alternative, if he/she finds the proposed policy generated alternatives in a choice set too expensive. The results suggest that adding an Opt-Out Reminder to Cheap Talk can in fact reduce hypothetical bias even further and reduces some of the ineffectiveness of CT in relation to the survey bid range and experienced respondents.

Original languageEnglish
Publication date2007
Number of pages30
Publication statusPublished - 2007
EventEAERE 2007 Annual Conference - Thessaloniki, Greece
Duration: 27 Jun 200730 Jun 2007
Conference number: 15

Conference

ConferenceEAERE 2007 Annual Conference
Number15
CountryGreece
CityThessaloniki
Period27/06/200730/06/2007

    Research areas

  • Former LIFE faculty - survey mode effect, representativity, choice experiment, willingness-to-pay, random parameters, mixed logit

ID: 8072209