Revisiting Cheap Talk with New Evidence from a Field Experiment
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We assess the reduction of hypothetical bias in consumers’ willingness to pay (WTP) for products
by applying a generic, short, and neutral cheap talk script in a retail setting. Using an open-ended
elicitation mechanism with non-hypothetical, hypothetical, and hypothetical with cheap
talk treatments, our results indicate that the hypothetical WTP values are higher than the nonhypothetical
values, but the hypothetical with cheap talk values are not significantly different
from non-hypothetical estimates.