Comparing open-ended choice experiments and experimental auctions: An application to golden rice

Jay R. Corrigan, D. P T Depositario, Rodolfo M. Nayga, Jr, Ximing Wu, Tiffany P. Laude

Research output: Contribution to journalArticle

66 Citations (Scopus)

Abstract

We use two experimental valuation methods to estimate consumer demand for genetically modified golden rice. The first is an open-ended choice experiment (OECE) where participants name the quantities of golden rice and conventional rice demanded at each of several price combinations, one of which will be randomly chosen as binding. This allows us to estimate market demand by aggregating demand across participants. This estimate of market demand also allows us to estimate own-price elasticity and consumer surplus for golden rice. Comparing willingness-to-pay (WTP) estimates from the OECE with those from a uniform-price auction, we find that OECE WTP estimates exhibit less affiliation across rounds, and the effects of positive and negative information under the OECE are more consistent with prior expectations and existing studies. We also find that, while auction WTP estimates more than double across five rounds, OECE WTP estimates are stable across rounds and are always roughly equal to those from the final auction round.

Original languageEnglish
Pages (from-to)837-853
Number of pages17
JournalAmerican Journal of Agricultural Economics
Volume91
Issue number3
DOIs
Publication statusPublished - 2009 Jun 18
Externally publishedYes

Keywords

  • Choice experiments
  • Experimental auctions
  • Golden rice
  • Valuation

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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