Hypothetical Bias and Substitutes in Stated Preference Survey: The Case of Irradiated Meat

Abstract

We examine whether allowing field substitutes to be simultaneously valued with a good of interest in a hypothetical valuation survey moderates behavioral bias between hypothetical statements and actual behaviors. We use a within-sample experiment and compare values in a hypothetical survey with values in a non-hypothetical experimental auction. Especially, we test whether a common calibration function exists for the good of interest with and without the presence of substitutes. We then estimate each calibration function and compare calibration factors. We find that hypothetical bias differs with and without the presence of substitutes and allowing the field substitutes to be simultaneously valued with the product of interest in a hypothetical valuation survey reduces hypothetical bias. Our results suggest that considering substitutes in the application of stated preference survey can help identify the true underlying demand conditions.