Economics Research Institute Study Paper
Utah State University Department of Economics
In this paper, we use a unique curbside-recycling data set to test the effectiveness of "cheap talk" and "preference uncertainty" in mitigating hypothetical bias in contingent valuation. The sample includes two types of households-those located in communities with curbside recycling programs (mandatory or voluntary) and those in communities without curbside recycling. Using stated and revealed preference data, detect significant hypothetical bias. Cheap talk and preference-uncertainty controls are partially effective in mitigating the bias.
Aadland, David and Caplan, Arthur J., "Detection and Mitigation of Hypothetical Bias in Contingent Valuation With An Application To Curbside Recycling" (2001). Economic Research Institute Study Papers. Paper 222.