Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments

Krcal, Ondrej and Peer, Stefanie and Stanek, Rostislav and Karlinova, Bara (2019) Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments. Economics of Transportation, 20. pp. 1-11. ISSN 2212-0122

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Abstract

In a controlled lab experiment, we investigate hypothetical biases in the value of time by comparing stated preference (SP) and revealed preference (RP) values attached to unexpected waiting times. The SP and RP choice sets are identical in terms of design with the only difference being that the RP choices have real consequences in terms of unexpected waiting times and monetary incentives. We find a substantial hypothetical bias with the average SP value of time being only 71% of the corresponding RP value. The bias is mainly driven by participants who have scheduling constraints during the time of the unexpected wait. Scheduling constraints are taken into account to a much lesser extent in the SP setting than in the RP setting, presumably because only in the latter, the consequences of ignoring them are costly. We find evidence that this effect is stronger for persons with relatively low cognitive ability.

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription
Keywords: valuation of time, hypothetical bias, stated preference, revealed preference, waiting time
Divisions: Departments > Sozioökonomie > Multi-Level Governance and Development
Version of the Document: Submitted
Depositing User: Gertraud Novotny
Date Deposited: 27 Sep 2019 11:09
Last Modified: 30 Sep 2019 08:46
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/92154/
URI: https://epub.wu.ac.at/id/eprint/7190

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