Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys

Hypothetical bias remains a major problem when valuing non-market goods with stated preference methods. Originally developed for Contingent Valuation studies, Cheap Talk has been found to effectively reduce hypothetical bias in some applications, though empirical results are ambiguous. We discuss reasons why Cheap Talk may fail to effectively remove hypothetical bias, especially in Choice Experiments. In this light, we suggest augmenting Cheap Talk in Choice Experiments with a so-called Opt-Out Reminder. Prior to each single choice set, the Opt-Out Reminder explicitly instructs respondents to choose the opt-out alternative if they find the experimentally designed alternatives too expensive. In an empirical Choice Experiment survey we find the Opt-Out Reminder to significantly reduce total WTP and to some extent also marginal WTP beyond the capability of the Cheap Talk applied without the Opt-Out Reminder. This suggests that rather than merely adopting the Cheap Talk practice directly from Contingent Valuation, it should be adapted to fit the potentially different decision processes and repeated choices structure of the Choice Experiment format. Our results further suggest that augmenting Cheap Talk with a dynamic Opt-Out Reminder can be an effective and promising improvement in the ongoing effort to remedy the particular types of hypothetical bias that potentially continue to invalidate Choice Experiment surveys.Cheap talk, Opt-Out Reminder, Choice Experiments, hypothetical bias, stream re-establishment, opt-out effect

Gender anomalies in Stated Preference surveys – Are biases really gender dependent?

In this paper, we develop a North-South endogenous growth model to examine thrThe potential for a number of common but severe biases in stated preference method surveys being gender dependent has been largely overlooked in the literature. In this paper we summarize results from three Choice Experiment studies that find evidence in favor of gender differences in vulnerability to biases. Specifically, the results indicate that women are more susceptible to starting point bias than men, while men are more susceptible to hypothetical bias than women. This seems to be interrelated with women inherently being more uncertain than men when choosing from a choice set. Furthermore, we set up a novel theoretical model, which provides an explanation for gender specific susceptibility to biases. We conclude that biases can indeed be gender dependent. Hence, researchers should not simply disregard potential gender differences, but rather take them into account and examine the extent of them when performing surveys. Finally, we give suggestions for future research in this area.Choice Experiment, Gender, Hypothetical bias, Preference Uncertainty, Starting point bias

To restore or not? A valuation of social and ecological functions of the Marais des Baux wetland in Southern France

The Marais des Baux wetland in southern France has for centuries been subject to drainage, almost causing its entire disappearance. With an increasing awareness of wetland ecosystem services, the extensive drainage is being questioned today. To guide policy-makers and landowners in their decision-making, we use a Choice Experiment to elicit the preferences of the general public for potential land use and activity changes in the Marais des Baux. These changes concern wetland restoration, the extent of tree hedges, recreational opportunities, mosquito control and biodiversity.

Organic farming and multicriteria decisions: An economic survey

Organic food production is a sphere where decision making is multi-facetted and complex. This applies to producers, political decision makers and consumers alike. This paper provides an overview of the economic methods that can aid such multi criteria decision making. We first provide an outline of the many different Multi-Criteria Analysis (MCA) techniques available and their relative advantages and disadvantages. In addition, theoretical and practical problems related to the use of Cost-Benefit Analysis (CBA) and MCA respectively are briefly discussed. We then review the MCA literature on case studies on organic farming. Based on this review we provide directional markers for future research where MCA may possibly be applied and adapted in order to provide useful knowledge and support for decision makers in the context of organic farming