Barrage, Lint; Lee, Min Sok - In: Economics Letters 106 (2010) 2, pp. 140-142
Contingent valuation often induces hypothetical bias. In a laboratory experiment, we test three calibration mechanisms: cheap-talk, consequentialism, and a new mechanism, the Bayesian truth serum ("BTS"). We apply the BTS in a "faith-based" format: subjects are informed about the purpose and...