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The role of reference prices in experimental auctions

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  • Drichoutis, Andreas C.
  • Lazaridis, Panagiotis
  • Nayga Jr., Rodolfo M.

Abstract

We examine the role of reference prices (field prices) in willingness to pay studies involving experimental auctions. Using a 2nd price Vickrey auction, we find that provision of reference prices increases bid values.

Suggested Citation

  • Drichoutis, Andreas C. & Lazaridis, Panagiotis & Nayga Jr., Rodolfo M., 2008. "The role of reference prices in experimental auctions," Economics Letters, Elsevier, vol. 99(3), pages 446-448, June.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:446-448
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    References listed on IDEAS

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    1. Corrigan, Jay R. & Rousu, Matthew C., 2006. "AJAE Appendix: Posted Prices and Bid Affiliation: Evidence from Experimental Auctions," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-12, November.
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