Effects of Cheap Talk on Consumer Willingness‐to‐Pay for Golden Rice

Lusk, Jayson L.

doi:10.1111/1467-8276.00492

Cited by 453 publications

(306 citation statements)

References 27 publications

(12 reference statements)

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“…Earlier work has pointed out that individuals participating in research measuring stated behavior or preferences sometimes tend to overestimate the extent they behave pro-environmentally, e.g., are willing to pay for an eco-labeled product [39]. However, others suggest that the size of this intention-behavior gap (if it exists) depends in large part on, e.g., how questions are posed [40] and the level of consumer objective knowledge [41]. In short, even though there may be a (slight) gap between intention and actual conduct, empirical work shows that a link between stated and actual behavior exist, while not always as strong as stated by respondents (e.g., [42]).…”

Section: Theoretical Framework Guiding the Studymentioning

confidence: 99%

Eco-Labeled Seafood: Determinants for (Blue) Green Consumption

et al. 2016

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Eco-certification has become an increasingly popular market-based tool in the endeavor to reduce negative environmental impacts from fisheries and aquaculture. In this study, we aimed at investigating which psychological consumer characteristics influence demand for eco-labeled seafood by correlating consumers' stated purchasing of eco-labeled seafood to nine variables: environmental knowledge regarding seafood production, familiarity with eco-labels, subjective knowledge, pro-environmental self-identification, sense of personal responsibility, concern for negative environmental impacts from seafood production, perceived consumer effectiveness, gender and education. Questionnaires were distributed to consumers in Stockholm, Sweden, and the data were tested with multiple regression analysis using linear modeling and model averaging (n = 371). Two variables were the best predictors of stated purchasing of eco-labeled seafood: (i) recognition and understanding of eco-labels for seafood (Marine Stewardship Council, Fish for Life, Aquaculture Stewardship Council and KRAV); and (ii) concern for negative environmental impacts associated with seafood production. Meanwhile, consumer environmental knowledge was a weaker predictor. Results from this study suggest that strengthening the emotional component of consumer decision-making and improving the level of consumer familiarity with seafood eco-labels could stimulate more pro-environmental seafood consumption.

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Section: Theoretical Framework Guiding the Studymentioning

confidence: 99%

Eco-Labeled Seafood: Determinants for (Blue) Green Consumption

et al. 2016

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“…The only previous empirical valuation study focusing on golden rice uses the hypothetical contingent valuation method to estimate WTP among a random sample of Mississippi households (Lusk 2003). Lusk finds that 62% of survey respondents given cheap talk information to counter hypothetical bias were willing to pay a $0.10 per-pound premium for golden rice.…”

Section: Golden Ricementioning

confidence: 99%

Comparing Open‐Ended Choice Experiments and Experimental Auctions: An Application to Golden Rice

Corrigan

Depositario

Nayga

et al. 2009

American J Agri Economics

103

117

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We use two experimental valuation methods to estimate consumer demand for genetically modified golden rice. The first is an open-ended choice experiment (OECE) where participants name the quantities of golden rice and conventional rice demanded at each of several price combinations, one of which will be randomly chosen as binding. This allows us to estimate market demand by aggregating demand across participants. This estimate of market demand also allows us to estimate own-price elasticity and consumer surplus for golden rice. Comparing willingness-to-pay (WTP) estimates from the OECE with those from a uniform-price auction, we find that OECE WTP estimates exhibit less affiliation across rounds, and the effects of positive and negative information under the OECE are more consistent with prior expectations and existing studies. We also find that, while auction WTP estimates more than double across five rounds, OECE WTP estimates are stable across rounds and are always roughly equal to those from the final auction round.

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“…In an experiment in which people stated their willingness to pay for sports cards, List and Gallet (2001) finds that cheap talk did not effectively decrease the hypothetical bias when agents are well informed about the good being valued. Similarly, Lusk (2003) find that a cheap talk script is effective in attenuating hypothetical bias only for certain classes of subjects -those with less market experience or less familiarity with the good being valued. This suggest cheap talk works as a learning booster, providing subjects before the valuation exercise take place the information they would acquire through a costly trial and errors process.…”

Section: Cheap Talkmentioning

confidence: 85%

Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation

Jacquemet

James

Luchini

et al. 2011

Environ Resource Econ

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Environmental economics is now a long standing field of research; much has been learned on how environmental policy can use incentives to drive individual behaviors. Among the many examples, preference elicitation is the most discussed case in which incentives fail to accurately implement efficient behavior. Using this as our motivating example, herein we explore the cross-fertilization between environmental economics and social psychology . We first review how the lessons drawn from social psychology helped address the hypothetical bias issue. We then turn to the future of this process by focusing on how cheap talk scripts influence preference elicitation. Our experimental results shows CT scripts work through persuasion -i.e. changes mind, but poorly changes actions. In that sense, preference elicitation still lacks a way of making communication binding -i.e. a way to alter intrinsic motivation of subjects to behave truthfully. Keywords:Social psychology, Commitment, Persuasive communication, Preference elicitation JEL Classification: C9; H4; Q5 Résumé L'économie de l'environnement a depuis longtemps permis de mettre en évidence les moyens par lesquels les politiques publiques menées dans ce domaine peuvent s'appuyer sur les incitations pour orienter les comportements. Les méthodes de révélation des préférences restent cependant l'un des exemples les plus étudiés de défaillance des incitations. En s'appuyant sur cette illustration, cet article propose une synthèse des progrès réalisés en économie de l'environnement grâce à l'intégration des résultats issus de la psychologie sociale. La première partie de l'article propose une revue des méthodes issues de cette discipline et destinées à corriger le biais hypothétique. La seconde partie s'appuie sur une expérience en laboratoire pour évaluer la capacité des scripts de cheap talk à résoudre ce problème. Les comportements observés montrent que les scripts de cheap talk influencent les comportements par un effet de persuasion -i.e. agissent sur les intentions, mais n'affectent que faiblement les actions. En ce sens, les méthodes de révélation des préférences souffrent toujours du manque d'une méthode de communication engageante -i.e. permettant d'affecter la motivation intrinsèque des individus à révéler leurs préférences vraies.

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Effects of Cheap Talk on Consumer Willingness‐to‐Pay for Golden Rice

Cited by 453 publications

References 27 publications

Eco-Labeled Seafood: Determinants for (Blue) Green Consumption

Eco-Labeled Seafood: Determinants for (Blue) Green Consumption

Comparing Open‐Ended Choice Experiments and Experimental Auctions: An Application to Golden Rice

Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation

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