Revisiting cheap talk with new evidence from a field experiment

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

Research output: Contribution to journalArticle

43 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 languageEnglish
Pages (from-to)280-291
Number of pages12
JournalJournal of Agricultural and Resource Economics
Volume36
Issue number2
Publication statusPublished - 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

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  • Cite this

    Silva, A., Nayga, R. M., Campbell, B. L., & Park, J. L. (2011). Revisiting cheap talk with new evidence from a field experiment. Journal of Agricultural and Resource Economics, 36(2), 280-291.