Author(s): Carson K, Chilton S, Hutchinson G, scarpa R
Abstract: Based on the results from an induced value experiment we develop a theoretical model to show how the positioning of the status quo as first second or third best choice in combinatorial designs can be predicted from a single measure of the overall number of choices preferred to the status quo, which we call π. Based on this we carry out an empirical investigation that shows how strategic incentives combine with combinatorial choice set design principles increases the potential for status-quo bias in repeated multiple choice experiments. Our findings highlights that choice experiments are not immune to the classic bias-efficiency dilemma pervasive in other non-market valuation methods.
Notes: To be submitted to J. of Environmetal Economics and Management (ABS 4)