3:30 pm - 4:30 pm
Using Economic Experiments to Assess Validity of Stated Preference Contingent Behavior Responses
Contingent behavior (CB), a stated preference (SP) method, elicits individuals’ intentions about behavior in quantities or frequencies under hypothetical scenarios. CB has primarily been used to elicit preferences and value natural resources in recreation demand models or to assess market demand. Although CB shares the hypothetical nature of other SP methods, potential issues around CB validity and incentive compatibility have not been assessed. Focusing on hypothetical bias and framing effects, we design an incentive-compatible decision mechanism that examines the validity of CB in economic experiments. We find hypothetical bias associated with an overstatement of quantities in CB responses. We also find that overstating quantities is not significantly affected by framing, but framing does affect the convergence of CB and revealed preference responses. These findings potentially draw into question the validity of some previous CB research and its demand revealing properties but provide some potential avenues to address these concerns.
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Meeting ID: 952 3994 7972