Using random nth price auctions to value non-market goods and services
Public policy decision making often requires balancing the benefits of a policy with the costs. While regulators in the United States and abroad rely heavily on benefit-cost analysis, critics contend that hypothetical bias precludes one of the most popular benefit estimation techniques--contingent surveys--from providing reliable economic values for nonmarket goods and services. This paper explores a new methodology to obtain the total value of nonmarket goods and services--random nth price auctions. The empirical work revolves around examining behavior of 360 participants in a competitive marketplace, where subjects naturally buy, sell, and trade commodities. The field experiment provides some preliminary evidence that hypothetical random nth price auctions can, in certain situations, reveal demand truthfully.
Other versions of this item:
- List, John A, 2003. "Using Random nth Price Auctions to Value Non-market Goods and Services," Journal of Regulatory Economics, Springer, vol. 23(2), pages 193-205, March.
- Dragicevic, Arnaud Z. & Ettinger, David, 2011.
"Private Valuation of a Public Good in Three Auction Mechanisms,"
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- Dragicevic Arnaud Z. & Ettinger David, 2011. "Private Valuation of a Public Good in Three Auction Mechanisms," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(2), pages 1-29, April.
- Arnaud Dragicevic & David Ettinger, 2011. "Private Valuation of a Public Good in Three Auction Mechanisms," Post-Print hal-00704708, HAL.
- Poole, Nigel D. & Marti'nez, Laura Marti'nez-Carrasco & Gimenez, Fernando Vidal, 2007. "Quality perceptions under evolving information conditions: Implications for diet, health and consumer satisfaction," Food Policy, Elsevier, vol. 32(2), pages 175-188, April.
- Lee, Ji Yong & Han, Doo Bong & Nayga Jr, Rodolfo M. & Lim, Song-Soo, 2011. "Valuing traceability of imported beef in Korea: an experimental auction approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), September.
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- repec:dau:papers:123456789/6445 is not listed on IDEAS
- 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.
- John List, 2013. "Using field experiments to change the template of how we teach economics," Artefactual Field Experiments 00389, The Field Experiments Website.
- Martinez-Carrasco, Laura & Brugarolas, Margarita & Martinez-Poveda, Africa & Ros, MarÃa del Mar & RuÃz MartÃnez, Juan JosÃ©, 2014. "Factores determinantes del precio de los tomates de variedades tradicionales: un anÃ¡lisis de precios hedÃ³nicos," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(2).
- Ty Feldkamp & Ted C. Schroeder, 2004. "Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 389-405.
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- James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, 03.
- Hellyer, Nicole Elizabeth & Fraser, Iain & Haddock-Fraser, Janet, 2010. "Food Choice, Nutritional Information And Functional Ingredients: An Experimental Auction Employing Bread," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116424, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
- Carlberg, Jared G. & Froehlich, Eve J., 2011. "Effects of Elicitation Method on Willingness-to-Pay: Evidence from the Field," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(2), July.
- Han, Doo Bong & Nayga, Rodolfo M., Jr. & Lee, Ji Yong & Yoon, Jong Min, 2012. "Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119817, Southern Agricultural Economics Association.
- Laurent Muller & Bernard Ruffieux, 2011. "Do price-tags influence consumers’ willingness to pay? On the external validity of using auctions for measuring value," Experimental Economics, Springer;Economic Science Association, vol. 14(2), pages 181-202, May.
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