A comparison of cheap talk and alternative certainty calibration techniques in contingent valuation

Mihail Samnaliev; Thomas Stevens; Thomas More

Treesearch

A comparison of cheap talk and alternative certainty calibration techniques in contingent valuation

Informally Refereed

Authors:

Mihail Samnaliev, Thomas Stevens, Thomas More

Year:

2003

Type:

Scientific Journal

Station:

Northern Research Station

Source:

Working Paper No. 2003-11. University of Massachusetts Amherst, Department of Resource Economics: Amherst, MA.

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Abstract

A field test of cheap talk and two types of certainty calibration in contingent valuation of public lands indicated that cheap talk does not reduce WTP estimates. Use of a ten point certainty calibration scale reduces WTP estimates by about half. However, adjusting for uncertainty using a 'Not Sure' option does not reduce WTP estimates but increases the variance in responses. There may be a conceptual difference between these two ways of accounting for respondents' uncertainty, which may suggest why they provide different WTP value estimates and variances.

Keywords

CVM, Hypothetical bias, Cheap talk, Certainty Calibration

Citation

Samnaliev, Mihail; Stevens, Thomas; More, Thomas. 2003. A comparison of cheap talk and alternative certainty calibration techniques in contingent valuation. Working Paper No. 2003-11. University of Massachusetts Amherst, Department of Resource Economics: Amherst, MA.