RT Journal Article
SR Electronic
T1 Use of Nonrounded Bids Triggers System 2 Full Information Processing in Discrete
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 102825-0091R
DO 10.3368/le.103.1.102825-0091R
A1 Morrison, Mark
A1 Boyle, Kevin
YR 2026
UL http://le.uwpress.org/content/early/2026/09/24/le.103.1.102825-0091R.abstract
AB An aspect of bid vector design in choice experiments that has received limited attention is the effect of using non-rounded (or precise) rather than rounded bids. Insights from the marketing and psychology literatures suggests that there are many factors potentially influencing the effects of using non-rounded bids, including image and level effects, accuracy cues, processing fluency, and stimulating more cognitively-based System 2 thinking. Using a split-sample experimental approach in a choice experiment, we find evidence that non-rounded bids may trigger use of System 2 cognitive processes, thereby increasing the number of significant attribute coefficients as well as reducing model variance.