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Rewarding truthful-telling in stated preference studies

Author

Listed:
  • Pierre-Alexandre Mahieu

    (University of Nantes, LEMNA)

  • Romain Crastes

    (University of Leeds, Centre of Choice Modelling)

  • Jordan Louviere

    (University of South Australia, School of Marketing)

  • Ewa Zawojska

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

Stated preference surveys rarely provide conditions where a respondent’s optimal strategy is to answer truthfully. As a result, the reliability of stated preference data is often questioned. We consider a new approach economic theory-based approach to incentivize respondents to answer truthfully. Our approach is based on a lie detector coupled with a reward. We discuss theoretical predictions of the approach and test them empirically in a split sample choice experiment dealing with a tree planting program. We find lie detection (i) increases time spent to complete the valuation tasks and (ii) decreases the variance of the error term by using a hybrid choice model that accounts for possible endogeneity. Our results are encouraging but more research is needed to assess the validity of this new approach.

Suggested Citation

  • Pierre-Alexandre Mahieu & Romain Crastes & Jordan Louviere & Ewa Zawojska, 2016. "Rewarding truthful-telling in stated preference studies," Working Papers 2016-33, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2016-33
    as

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    File URL: http://www.wne.uw.edu.pl/index.php/download_file/3191/
    File Function: First version, 2016
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    References listed on IDEAS

    as
    1. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    2. Jacquemet, Nicolas & Joule, Robert-Vincent & Luchini, Stéphane & Shogren, Jason F., 2013. "Preference elicitation under oath," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 110-132.
    3. repec:hal:pseose:halshs-00731244 is not listed on IDEAS
    4. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    5. Rolando Guzman & Charles Kolstad, 2007. "Researching Preferences, Valuation and Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 465-487, July.
    6. Tiziana de-Magistris & Azucena Gracia & Rodolfo M. Nayga, 2013. "On the Use of Honesty Priming Tasks to Mitigate Hypothetical Bias in Choice Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1136-1154.
    7. 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.
    8. Bosworth Ryan & Taylor Laura O., 2012. "Hypothetical Bias in Choice Experiments: Is Cheap Talk Effective at Eliminating Bias on the Intensive and Extensive Margins of Choice?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-28, December.
    9. Barrage, Lint & Lee, Min Sok, 2010. "A penny for your thoughts: Inducing truth-telling in stated preference elicitation," Economics Letters, Elsevier, vol. 106(2), pages 140-142, February.
    10. Aleksandra Gajic & David Cameron & Jeremiah Hurley, 2012. "The cost-effectiveness of cash versus lottery incentives for a web-based, stated-preference community survey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(6), pages 789-799, December.
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    Cited by:

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    More about this item

    Keywords

    stated preferences; truth-telling; choice experiment;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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