Auction mechanisms and the measurement of WTP and WTA

Citation
Jf. Shogren et al., Auction mechanisms and the measurement of WTP and WTA, RES ENER EC, 23(2), 2001, pp. 97-109
Citations number
25
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Economics
Journal title
RESOURCE AND ENERGY ECONOMICS
ISSN journal
0928-7655 → ACNP
Volume
23
Issue
2
Year of publication
2001
Pages
97 - 109
Database
ISI
SICI code
0928-7655(200104)23:2<97:AMATMO>2.0.ZU;2-#
Abstract
We evaluate the impact of three auction mechanisms - the Becker-DeGroot-Mar schak mechanism, the second-price auction, and the random nth-price auction - in the measurement of willingness to pay (WTP) and willingness to accept (WTA) measures of value, our results show that initial bidding in trial 1 in each auction does not contradict the endowment effect; but that, if it i s the endowment effect that governs people's initial bidding behavior, it c an be eliminated with repetitions of a second-price or random nth-price auc tion; and if the thesis is that the effect should persist across auctions a nd across trials is right, our results suggest that there is no fundamental endowment effect. (C) 2001 Elsevier Science B.V. All rights reserved.