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Experimental auctions, collective induction and choice shift: Willingness-to-pay for rice quality in Senegal

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Listed author(s):
  • Demont, Matty
  • Rutsaert, Pieter
  • Ndour, Maimouna
  • Verbeke, Wim
  • Seck, Papa Abdoulaye
  • Tollens, Eric

Abstract

We propose a collective induction treatment as an aggregator of information and preferences, which enables testing whether consumer preferences for food quality elicited through experimental auctions are robust to aggregation. We develop a two-stage estimation method based on social judgment scheme theory to identify the determinants of social influence in collective induction. Our method is tested in a market experiment aiming to assess consumers’ willingness-to-pay for rice quality in Senegal. No significant choice shift was observed after collective induction which suggests that consumer preferences for rice quality are robust to aggregation. Almost three quarters of social influence captured by the model and the variables was explained by social status, market expertise and information.

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File URL: http://purl.umn.edu/126861
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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126861.

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Date of creation: 2012
Handle: RePEc:ags:iaae12:126861
Contact details of provider: Web page: http://www.iaae-agecon.org/
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Keywords: Vickrey auctions; social decision schemes; group decision-making; word-of mouth communication; Sharpe style weights; Demand and Price Analysis; Research Methods/ Statistical Methods; C24; C91; C92; D12; D71;

Find related papers by JEL classification:

  • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
  • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
  • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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Cited by:

  1. Kouyate, Carolin & von Cramon-Taubadel, Stephan & Fofana, Ismael, 2016. "Proximity and price co-movement in West African rice markets," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(3), September.

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