IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v35y2019i3p329-342.html
   My bibliography  Save this article

Accounting for the hypothetical bias: A changing adjustment factor approach

Author

Listed:
  • Marilena Furno
  • Francesco La Barbera
  • Fabio Verneau

Abstract

The existence of the hypothetical bias is a well‐documented issue, and several techniques have been proposed to realign stated preferences to revealed preferences demand data. Among the ex post approaches to reduce hypothetical bias, the estimation of calibration factors and calibration functions has been considered by many authors. Nevertheless, a calibration method that allows the extent of the adjustment to vary with the magnitude of stated bids has never been proposed. Therefore, in the present study, we investigate the topic of ex post approaches showing that the bias changes along the quantiles of the WTP distribution. Using data of both hypothetical and nonhypothetical experimental auction for a private and deliverable good, a calibration method that allows the extent of the adjustment to vary with the magnitude of the stated WTP is proposed.

Suggested Citation

  • Marilena Furno & Francesco La Barbera & Fabio Verneau, 2019. "Accounting for the hypothetical bias: A changing adjustment factor approach," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 329-342, July.
    • Handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:329-342
    DOI: 10.1002/agr.21578
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21578
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21578?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. F. Bailey Norwood & Jayson L. Lusk, 2011. "Social Desirability Bias in Real, Hypothetical, and Inferred Valuation Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 528-534.
    2. Loomis, John B., 2014. "2013 WAEA Keynote Address: Strategies for Overcoming Hypothetical Bias in Stated Preference Surveys," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-13, April.
    3. Loomis, John B. & Gonzalez-Caban, Armando & Englin, Jeffrey E., 2001. "Testing For Differential Effects Of Forest Fires On Hiking And Mountain Biking Demand And Benefits," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-15, December.
    4. Lim, Kar Ho & Grebitus, Carola & Hu, Wuyang & Nayga, Rodolfo M. Jr., 2015. "Inducing Hypothetical Bias Mitigation with Ten Commandments," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205648, Agricultural and Applied Economics Association.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part I. Integrative synthesis of empirical evidence and conceptualisation of external validity," Papers 2102.02940, arXiv.org.
    2. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    3. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    4. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lai, Yufeng & Yue, Chengyan, 2020. "Consumer Willingness to pay for Organic and Animal Welfare Product Attributes: Do Experimental Results Align with Market Data?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304328, Agricultural and Applied Economics Association.
    2. Kar Ho Lim & Wuyang Hu, 2023. "Contextual reference price in choice experiments," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1288-1306, August.
    3. Stephane Bergeron & Maurice Doyon & Laurent Muller, 2019. "Strategic response: A key to understand how cheap talk works," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(1), pages 75-83, March.
    4. Alhassan, Mustapha & Gustafson, Christopher R. & Schoengold, Karina, 2017. "Effects of Information Framing on Smallholder Irrigation Farmers’ Willingness to Pay for Groundwater Protection: The Case of Vea Irrigation Scheme in Ghana," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258432, Agricultural and Applied Economics Association.
    5. Ewa Zawojska & Pierre-Alexandre Mahieu & Romain Crastes & Jordan Louviere, 2016. "On a way to overcome strategic overbidding in open-ended stated preference surveys: A recoding approach," Working Papers 2016-34, Faculty of Economic Sciences, University of Warsaw.
    6. Roy Brouwer & Solomon Tarfasa, 2020. "Testing hypothetical bias in a framed field experiment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 343-357, September.
    7. Tonin, Stefania, 2018. "Citizens’ perspectives on marine protected areas as a governance strategy to effectively preserve marine ecosystem services and biodiversity," Ecosystem Services, Elsevier, vol. 34(PB), pages 189-200.
    8. Dhakal, Bhubaneswor & Yao, Richard T. & Turner, James A. & Barnard, Tim, 2012. "Recreational users' willingness to pay and preferences for changes in planted forest features," Forest Policy and Economics, Elsevier, vol. 17(C), pages 34-44.
    9. Zuo, Alec & Hou, Lingling & Huang, Zeying, 2020. "How does farmers' current usage of crop straws influence the willingness-to-accept price to sell?," Energy Economics, Elsevier, vol. 86(C).
    10. Peschel, Anne O. & Grebitus, Carola & Steiner, Bodo & Veeman, Michele, 2015. "A Behavioral Approach to Understanding Green Consumerism Using Latent Class Choice Analysis," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202727, European Association of Agricultural Economists.
    11. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason F. Shogren, 2017. "Referenda Under Oath," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 479-504, July.
    12. Schuster, Monica & Vranken, Liesbet & Maertens, Miet, 2017. "You Can(’t) Always Get the Job You Want: Stated versus Revealed Employment Preferences in the Peruvian Agro-industry," Working Papers 254076, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    13. Tobias Börger, 2016. "Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 389-413, October.
    14. Dörschner, T. & Musshoff, O., 2015. "How do incentive-based environmental policies affect environment protection initiatives of farmers? An experimental economic analysis using the example of species richness," Ecological Economics, Elsevier, vol. 114(C), pages 90-103.
    15. Broberg, Thomas & Kažukauskas, Andrius, 2021. "Information policies and biased cost perceptions - The case of Swedish residential energy consumption," Energy Policy, Elsevier, vol. 149(C).
    16. Anesbury, Zachary William & Talbot, Danielle & Day, Chanel Andrea & Bogomolov, Tim & Bogomolova, Svetlana, 2020. "The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    17. W. Bowman Cutter & Linwood Pendleton & J. R. DeShazo, 2007. "Activities in Models of Recreational Demand," Land Economics, University of Wisconsin Press, vol. 83(3), pages 370-381.
    18. Osiemo, Jamleck & Sibiko, Kenneth Waluse & Ng'ang'a, Stanley Karanja & Notenbaert, An M.O., 2024. "Are dairy farmers willing to pay for improved forage varieties? Experimental evidence from Kenya," Food Policy, Elsevier, vol. 124(C).
    19. Haefele, Michelle A. & Loomis, John B. & Lien, Aaron M. & Dubovsky, James A. & Merideth, Robert W. & Bagstad, Kenneth J. & Huang, Ta-Ken & Mattsson, Brady J. & Semmens, Darius J. & Thogmartin, Wayne E, 2019. "Multi-country Willingness to Pay for Transborder Migratory Species Conservation: A Case Study of Northern Pintails," Ecological Economics, Elsevier, vol. 157(C), pages 321-331.
    20. Olofsson, Sara & Gerdtham , Ulf-G & Hultkrantz , Lars & Persson , Ulf, 2016. "Chained Approach vs Contingent Valuation for Estimating the Value of Risk Reduction," Working Papers 2016:34, Lund University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:329-342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.