Abstract
Applied economics studies have started using cheap talk to mitigate hypothetical bias in stated preference studies. Despite some contradictory evidence about cheap talk's effectiveness, no known cheap talk study has taken into account how subjects' perception of the complexity of the experimental task can influence cheap talk's effectiveness in reducing hypothetical bias. Using a choice experiment, our results suggest that perceived complexity of the task has a significant impact on cheap talk's effectiveness in reducing hypothetical bias. The cheap talk script was effective only when subjects considered the task to be easy. Hence, the complexity of the task affects cheap talk's effectiveness, which may explain some of the contradictory results relating to the effectiveness of the use of cheap talk in past studies.
| Original language | English |
|---|---|
| Pages (from-to) | 1711-1714 |
| Number of pages | 4 |
| Journal | Applied Economics Letters |
| Volume | 19 |
| Issue number | 17 |
| DOIs | |
| Publication status | Published - 2012 Nov 1 |
| Externally published | Yes |
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Keywords
- cheap talk
- complexity
- stated choice
- willingness-to-pay
ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Can perceived task complexity influence cheap talk's effectiveness in reducing hypothetical bias in stated choice studies? / Silva, Andres; Nayga, Jr, Rodolfo M.; Campbell, Benjamin L.; Park, John L.
In: Applied Economics Letters, Vol. 19, No. 17, 01.11.2012, p. 1711-1714.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Can perceived task complexity influence cheap talk's effectiveness in reducing hypothetical bias in stated choice studies?
AU - Silva, Andres
AU - Nayga, Jr, Rodolfo M.
AU - Campbell, Benjamin L.
AU - Park, John L.
PY - 2012/11/1
Y1 - 2012/11/1
N2 - Applied economics studies have started using cheap talk to mitigate hypothetical bias in stated preference studies. Despite some contradictory evidence about cheap talk's effectiveness, no known cheap talk study has taken into account how subjects' perception of the complexity of the experimental task can influence cheap talk's effectiveness in reducing hypothetical bias. Using a choice experiment, our results suggest that perceived complexity of the task has a significant impact on cheap talk's effectiveness in reducing hypothetical bias. The cheap talk script was effective only when subjects considered the task to be easy. Hence, the complexity of the task affects cheap talk's effectiveness, which may explain some of the contradictory results relating to the effectiveness of the use of cheap talk in past studies.
AB - Applied economics studies have started using cheap talk to mitigate hypothetical bias in stated preference studies. Despite some contradictory evidence about cheap talk's effectiveness, no known cheap talk study has taken into account how subjects' perception of the complexity of the experimental task can influence cheap talk's effectiveness in reducing hypothetical bias. Using a choice experiment, our results suggest that perceived complexity of the task has a significant impact on cheap talk's effectiveness in reducing hypothetical bias. The cheap talk script was effective only when subjects considered the task to be easy. Hence, the complexity of the task affects cheap talk's effectiveness, which may explain some of the contradictory results relating to the effectiveness of the use of cheap talk in past studies.
KW - cheap talk
KW - complexity
KW - stated choice
KW - willingness-to-pay
UR - http://www.scopus.com/inward/record.url?scp=84863460316&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84863460316&partnerID=8YFLogxK
U2 - 10.1080/13504851.2012.667532
DO - 10.1080/13504851.2012.667532
M3 - Article
AN - SCOPUS:84863460316
VL - 19
SP - 1711
EP - 1714
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 17
ER -