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Value Elicitation using BDM and a Discrete Choice Mechanism

Author

Listed:
  • Jutta Roosen

    (Technische Universitaet Muenchen)

  • Stephan Marette

    (UMR ECONOMIE PUBLIQUE INRA AGROPARISTECH)

  • Sandrine Blanchemanche

    (Met@risk, INRA-AgroParisTech)

Abstract

We compare the Becker-DeGroot-Marschak (BDM) mechanism to a discrete choice mechanism for revealing willingness to pay (WTP) in a lab experiment. Differences in WTP disappear when considering only engaged bidders with non-zero bids. Only WTP elicited with BDM are sensitive to the variation of quantity offered to participants.

Suggested Citation

  • Jutta Roosen & Stephan Marette & Sandrine Blanchemanche, 2010. "Value Elicitation using BDM and a Discrete Choice Mechanism," Economics Bulletin, AccessEcon, vol. 30(2), pages 1554-1563.
    • Handle: RePEc:ebl:ecbull:eb-10-00323
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    References listed on IDEAS

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    Cited by:

    1. Stéphan Marette & Jayson L. Lusk & Jutta Roosen, 2010. "Welfare Impact of Information with Experiments: The Crucial Role of the Price Elasticity of Demand," Economics Bulletin, AccessEcon, vol. 30(2), pages 1585-1593.
    2. Marette, Stéphan & Messéan, Antoine & Millet, Guy, 2012. "Consumers’ willingness to pay for eco-friendly apples under different labels: Evidences from a lab experiment," Food Policy, Elsevier, vol. 37(2), pages 151-161.

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    More about this item

    Keywords

    experimental economics; substitution;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • I1 - Health, Education, and Welfare - - Health

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