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Hypothetical bias mitigation in representative and convenience samples

Author

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  • Jerrod M. Penn
  • Daniel R. Petrolia
  • J. Matthew Fannin

Abstract

This is a case study comparing outcomes for a probability‐based representative sample versus a non‐probability convenience sample for the valuation of beach condition information among Gulf of Mexico residents. We test the efficacy of several techniques used to adjust for hypothetical bias and sample weighting to reduce hypothetical willingness to pay (WTP). Weighting makes the WTP between the two samples similar, but model equivalence with respect to the significance of explanatory variables is rejected. The results support the use of certainty follow‐ups, which consistently reduced WTP, regardless of the sampling approach or weighting.

Suggested Citation

  • Jerrod M. Penn & Daniel R. Petrolia & J. Matthew Fannin, 2023. "Hypothetical bias mitigation in representative and convenience samples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 721-743, June.
    • Handle: RePEc:wly:apecpp:v:45:y:2023:i:2:p:721-743
    DOI: 10.1002/aepp.13374
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    References listed on IDEAS

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    1. W. Michael Hanemann, 1989. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1057-1061.
    2. Jerrod M Penn & Wuyang Hu, 2018. "Understanding Hypothetical Bias: An Enhanced Meta-Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1186-1206.
    3. Aadland, David & Caplan, Arthur J., 2006. "Cheap talk reconsidered: New evidence from CVM," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 562-578, August.
    4. Dominique Ami & Frédéric Aprahamian & Olivier Chanel & Stéphane Luchini, 2011. "A Test of Cheap Talk in Different Hypothetical Contexts: The Case of Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 111-130, September.
    5. Jerrod Penn & Wuyang Hu, 2023. "Adjusting and Calibrating Elicited Values Based on Follow-up Certainty Questions: A Meta-analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(4), pages 919-946, April.
    6. John C. Whitehead & Andrew Ropicki & John Loomis & Sherry Larkin & Tim Haab & Sergio Alvarez, 2023. "Estimating the benefits to Florida households from avoiding another Gulf oil spill using the contingent valuation method: Internal validity tests with probability‐based and opt‐in samples," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 705-720, June.
    7. Gregory Poe & Jeremy Clark & Daniel Rondeau & William Schulze, 2002. "Provision Point Mechanisms and Field Validity Tests of Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(1), pages 105-131, September.
    8. Coppock, Alexander, 2019. "Generalizing from Survey Experiments Conducted on Mechanical Turk: A Replication Approach," Political Science Research and Methods, Cambridge University Press, vol. 7(3), pages 613-628, July.
    9. Penn, Jerrod & Hu, Wuyang, 2019. "Cheap talk efficacy under potential and actual Hypothetical Bias: A meta-analysis," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 22-35.
    10. Matthew G. Interis & Daniel R. Petrolia, 2016. "Location, Location, Habitat: How the Value of Ecosystem Services Varies across Location and by Habitat," Land Economics, University of Wisconsin Press, vol. 92(2), pages 292-307.
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    Cited by:

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