What floats your boat? Preference revelation from lotteries over complex goods
AbstractA lottery that provides participants the opportunity to choose among a set of simple gambles over multi-attribute goods results in an endogenous distribution of win rates over gambles that reflects tradeoffs between the relative desirability of the available goods and the probability of winning. These win rates provide sufficient information to estimate hedonic prices, marginal utility, and marginal rates of substitution among attributes. We develop a model for mapping preferences from this information set and apply it to Idaho’s Four Rivers Whitewater Recreation Lottery. This lottery structure shows promise as a foundation for economic experiments for preference revelation.
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Bibliographic InfoPaper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2012-4.
Length: 45 pages
Date of creation: 2012
Date of revision:
lotteries; complex goods; hedonic pricing; choice under uncertainty;
Find related papers by JEL classification:
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-23 (All new papers)
- NEP-MIC-2012-07-23 (Microeconomics)
- NEP-UPT-2012-07-23 (Utility Models & Prospect Theory)
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