Social Psychology and Environmental Economics: A New Look at Ex Ante Corrections of Biased Preference Evaluation

Abstract

The field of social psychology explores how a person behaves within the context of other people. The social context can play a substantive role in non-market allocation decisions given peoples choices and values extend beyond the classic market-based exchange institution. Herein we explore how social psychology has affected one aspect of environmental economics: preference elicitation through survey work. We discuss social representation, social isolation, framing through cheap talk, and commitment theory through an oath.

Keywords: Social psychology, Commitment, Persuasive communication, Preference elicitation

JEL Classification: C9, H4, Q5