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Hypothetical-actual bid calibration of a multi-good auction

Author

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  • John List
  • Michael Margolis
  • Jason Shogren

Abstract

Evidence suggests the calibration of hypothetical and actual behavior is good-specific. We examine whether clustering commodities into mutual categories can reduce the burden. While we reject a common calibration across sets of commodities, a sport-specific calibration function cannot be rejected.

Suggested Citation

  • John List & Michael Margolis & Jason Shogren, 1998. "Hypothetical-actual bid calibration of a multi-good auction," Framed Field Experiments 00171, The Field Experiments Website.
    • Handle: RePEc:feb:framed:00171
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    References listed on IDEAS

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    1. Helen R. Neill & Ronald G. Cummings & Philip T. Ganderton & Glenn W. Harrison & Thomas McGuckin, 1994. "Hypothetical Surveys and Real Economic Commitments," Land Economics, University of Wisconsin Press, vol. 70(2), pages 145-154.
    2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    3. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    4. John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
    5. List, John A. & Shogren, Jason F., 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 193-205, October.
    6. McKinley Blackburn & Glenn W. Harrison & E. Elisabet Rutström, 1994. "Statistical Bias Functions and Informative Hypothetical Surveys," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1084-1088.
    7. Jason F. Shogren & John A. Fox, 1996. "Consumer Preferences for Fresh Food Items with Multiple Quality Attributes: Evidence from an Experimental Auction of Pork Chops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 916-923.
    8. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    9. Melton, Brian & Huffman, Wallace & Shogren, Jason F., 1996. "Consumer Preferences for Fresh Food with Multiple Attributes: Evidence from an Experimental Auction of Pork Chops," Staff General Research Papers Archive 5042, Iowa State University, Department of Economics.
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    Citations

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    Cited by:

    1. Liu, Pengcheng, 2009. "Consumers’ WTA for GM rice cookie: an experiment study in China," 2009 Conference, August 16-22, 2009, Beijing, China 51771, International Association of Agricultural Economists.
    2. Hara, Yusuke, 2018. "Behavioral mechanism design for transportation services: Laboratory experiments and preference elicitation cost," Transportation Research Part B: Methodological, Elsevier, vol. 115(C), pages 231-245.
    3. Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2001. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingess To Pay For Nongenetically Modified Corn Chips," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.
    4. Alfnes, Frode & Rickertsen, Kyrre, 2003. "Sc-X: Calibrating Stated Choice Surveys With Experimental Auction Markets," 2003 Annual meeting, July 27-30, Montreal, Canada 21962, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. David Lucking-Reiley & John A. List, 2000. "Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment," American Economic Review, American Economic Association, vol. 90(4), pages 961-972, September.
    6. John A. List, 2014. "Using Field Experiments to Change the Template of How We Teach Economics," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(2), pages 81-89, June.
    7. Azevedo, C.D. & Crooker, J.R. & Pattiz, B., 2012. "Bid Imprecision As A Source Of Hypothetical Bias In Contingent Valuation Estimation: Analysis Of A Survey Of Respondent’S Attitudes For The Battle Of Lexington State Historic Site (Shs)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
    8. Corrigan, Jay R. & Rousu, Matthew C., 2008. "Testing Whether Field Auction Experiments Are Demand Revealing in Practice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2).
    9. Rodolfo M. Nayga, Jr. & Ximing Wu & Robert G. Brummett, 2007. "On the Use of Cheap Talk in New Product Valuation," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-9.
    10. Jeffrey Flory & Uri Gneezy & Kenneth Leonard & John List, 2012. "Sex, competitiveness, and investment in offspring: On the origin of preferences," Artefactual Field Experiments 00072, The Field Experiments Website.
    11. List, John A. & Shogren, Jason F., 2002. "Calibration of Willingness-to-Accept," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 219-233, March.
    12. repec:ken:wpaper:0804 is not listed on IDEAS
    13. repec:ebl:ecbull:v:2:y:2007:i:1:p:1-9 is not listed on IDEAS
    14. Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31.
    15. Eva Camacho-Cuena & Aurora García-Gallego & Nikolaos Georgantzís & Gerardo Sabater-Grande, 2004. "An Experimental Validation of Hypothetical WTP for a Recyclable Product," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 313-335, March.
    16. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Explaining differences in real and hypothetical experimental auctions and choice experiments with personality," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 11-26.
    17. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    18. Barrage, Lint & Lee, Min Sok, 2010. "A penny for your thoughts: Inducing truth-telling in stated preference elicitation," Economics Letters, Elsevier, vol. 106(2), pages 140-142, February.

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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