Strategic response: A key to understand how cheap talk works - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
Article Dans Une Revue Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie Année : 2019

Strategic response: A key to understand how cheap talk works

Résumé

Experimental protocols testing the effectiveness of cheap talk are numerous but have generated conflicting results. The theoretical interpretation of hypothetical bias as a strategic response according to the perceived consequence could be the missing key to understand these opposite results from the literature. Increasing evidence suggests that this bias rises from subjects’ perception of how stated preferences surveys will be used; some subjects believing that stated valuations can impact the price of the good, while others that it will influence its provision. Subjects strategically respond by adjusting their declared values accordingly. This paper reports experimental findings supporting the presence of strategic response, showing that cheap talk operates by mitigating these behaviors and potentially explaining cheap talk's heterogeneous results..

Dates et versions

hal-02962802 , version 1 (09-10-2020)

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Citer

Stephane Bergeron, Maurice Doyon, Laurent Muller. Strategic response: A key to understand how cheap talk works. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 2019, 67 (1), pp.75-83. ⟨10.1111/cjag.12182⟩. ⟨hal-02962802⟩
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