Improving the Use of Experimental Auctions in Africa: Theory and Evidence
Experimental auctions have not been widely used in Africa. However, auctions are important tools for evaluating new products and technologies. To increase the quality of these experiments, we explore an alternative first-price bidding mechanism that is more similar to African market exchanges and we analyze factors likely to affect bidding. Experiments with African consumers show that the proposed first-price mechanism has no advantage over conventional second-price mechanisms. Results show high and significant cash-in-hand, experimenter, and time of day effects in main rounds, and significant ordering effects in test rounds. These effects need to be carefully considered when applying the Becker-DeGroot-Marschak mechanism in Africa.
Volume (Year): 36 (2011)
Issue (Month): 2 (August)
|Contact details of provider:|| Web page: http://waeaonline.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elizabeth Hoffman & Dale J. Menkhaus & Dipankar Chakravarti & Ray A. Field & Glen D. Whipple, 1993. "Using Laboratory Experimental Auctions in Marketing Research: A Case Study of New Packaging for Fresh Beef," Marketing Science, INFORMS, vol. 12(3), pages 318-338.
- Hugo De Groote & Simon Chege Kimenju & Ulrich B. Morawetz, 2011. "Estimating consumer willingness to pay for food quality with experimental auctions: the case of yellow versus fortified maize meal in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 42(1), pages 1-16, 01.
- David Dickinson & Ronald Oaxaca, 2005. "The Equivalence of Panel Data Estimators under Orthogonal Experimental Design," Working Papers 05-07, Department of Economics, Appalachian State University.
- Irwin, Julie R, et al, 1998. "Payoff Dominance vs. Cognitive Transparency in Decision Making," Economic Inquiry, Western Economic Association International, vol. 36(2), pages 272-285, April.
- Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001.
"A random nth-price auction,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 46(4), pages 409-421, December.
- Cannon Koo & John List & Michael Margolis & Jason Shogren, 2001. "A random nth-price auction," Artefactual Field Experiments 00517, The Field Experiments Website.
- Ehmke, Mariah D. & Shogren, Jason F., 2009. "Experimental methods for environment and development economics," Environment and Development Economics, Cambridge University Press, vol. 14(04), pages 419-456, August.
- 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(01), July.
- Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2000. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingness-To-Pay For Non-Genetically Modified Corn Chips," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36424, Western Agricultural Economics Association.
- Simon Chege Kimenju & Hugo De Groote, 2008. "Consumer willingness to pay for genetically modified food in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 35-46, 01.
- Kimenju, Simon Chege & De Groote, Hugo, 2005. "Consumers' Willingness to Pay for Genetically Modified Foods in Kenya," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24504, European Association of Agricultural Economists.
- Maria L. Loureiro & Wendy J. Umberger & Susan Hine, 2003. "Testing the initial endowment effect in experimental auctions," Applied Economics Letters, Taylor & Francis Journals, vol. 10(5), pages 271-275, April.
- Alpaslan Akay & Peter Martinsson & Haileselassie Medhin & Stefan Trautmann, 2012. "Attitudes toward uncertainty among the poor: an experiment in rural Ethiopia," Theory and Decision, Springer, vol. 73(3), pages 453-464, September.
- Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 747-782.
- Craig Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2005. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," NBER Working Papers 11611, National Bureau of Economic Research, Inc.
- Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2006. "Toward an understanding of the economics of charity: Evidence from a field experiment," Natural Field Experiments 00292, The Field Experiments Website.
- Kagel, John H & Harstad, Ronald M & Levin, Dan, 1987. "Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study," Econometrica, Econometric Society, vol. 55(6), pages 1275-1304, November.
- Zeileis, Achim, 2004. "Econometric Computing with HC and HAC Covariance Matrix Estimators," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 11(i10).
- De Groote, Hugo & Tomlins, Keith & Haleegoah, Joyce & Awool, Manfred & Frimpong, Benedicta & Banerji, Abijit & Chowdury, Shyamal K. & Meenakshi, J.V., 2010. "Assessing rural consumers’ WTP for orange, biofortified maize in Ghana with experimental auctions and a simulated radio message," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96197, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
- Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-647, June.
- Kiria, Christine G. & Vermeulen, Hester & De Groote, Hugo, 2010. "Sensory Evaluation and Consumers’ Willingness to Pay for Quality Protein Maize (QPM) using Experimental Auctions in Rural Tanzania," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96417, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
- Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 448-457.
- Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," Working Papers 0601, Kenyon College, Department of Economics.
- Muzhingi, Tawanda & Langyintuo, Augustine S. & Malaba, Lucie C. & Banziger, Marianne, 2008. "Consumer acceptability of yellow maize products in Zimbabwe," Food Policy, Elsevier, vol. 33(4), pages 352-361, August.
- Croissant, Yves & Millo, Giovanni, 2008. "Panel Data Econometrics in R: The plm Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i02).
- T.S. Jayne & Lawrence Rubey & Frank Lupi & David Tschirley & Michael T. Weber, 1996. "Estimating Consumer Response to Food Market Reform Using Stated Preference Data: Evidence from Eastern and Southern Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 820-824.
- Dale Whittington, 2002. "Improving the Performance of Contingent Valuation Studies in Developing Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 323-367, June.
- Dale Whittington, 2007. "Improving the Performance of Contingent Valuation Studies in Developing Countries," EEPSEA Special and Technical Paper sp200709s1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Sep 2007.
- Ehmke, Mariah & Lusk, Jayson & Tyner, Wallace, 2010. "Multidimensional tests for economic behavior differences across cultures," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 37-45, January.
- K hlin, Gunnar, 2001. "Contingent valuation in project planning and evaluation: the case of social forestry in Orissa, India," Environment and Development Economics, Cambridge University Press, vol. 6(02), pages 237-258, May. Full references (including those not matched with items on IDEAS)