Revisiting cheap talk with new evidence from a field experiment

Andres Silva; Rodolfo M. Nayga; Benjamin L. Campbell; John L. Park

Revisiting cheap talk with new evidence from a field experiment

Andres Silva, Rodolfo M. Nayga, Benjamin L. Campbell, John L. Park

Department of Food and Resource Economics

Research output: Contribution to journal › Article › peer-review

68 Citations (Scopus)

Abstract

We assess the reduction of hypothetical bias in consumers' willingness to pay (WTP) for products by applying a generic, short, and neutral cheap talk script in a retail setting. Using an open-ended elicitation mechanism with non-hypothetical, hypothetical, and hypothetical with cheap talk treatments, our results indicate that the hypothetical WTP values are higher than the nonhypothetical values, but the hypothetical with cheap talk values are not significantly different from non-hypothetical estimates.

Original language	English
Pages (from-to)	280-291
Number of pages	12
Journal	Journal of Agricultural and Resource Economics
Volume	36
Issue number	2
Publication status	Published - 2011 Aug

Keywords

BDM
Cheap talk
Field experiment
Hypothetical bias
Willingness-to-pay

ASJC Scopus subject areas

Animal Science and Zoology
Agronomy and Crop Science
Economics and Econometrics

Cite this

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KW - Willingness-to-pay

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Revisiting cheap talk with new evidence from a field experiment

Abstract

Keywords

ASJC Scopus subject areas

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