Revisiting Cash Endowment and House Money Effects in an Experimental Auction of a Novel Agri-food Product in the Philippines

Dinah Pura T Depositario, Rodolfo M. Nayga, Jr, Yu Yvette Zhang, Robert Dominick E Mariano

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This study explores the effect of varying cash endowments on bidding behavior in auction experiments conducted in a developing country. Our results suggest that cash endowment levels can have different effects on bidding behavior under second price auction and random nth price auction. In contrast to past studies conducted in developed countries, we generally do not see the presence of positive house money effect in our results. If behavior varies significantly as the cash endowment is varied, then care must be taken when designing auction experiments or when comparing results to other experimental results and theoretical predictions.Asian Economic Journal

Original languageEnglish
Pages (from-to)201-215
Number of pages15
JournalAsian Economic Journal
Volume28
Issue number2
DOIs
Publication statusPublished - 2014 Jan 1

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auction
Philippines
money
food
experiment
developing world
developing country
prediction
economics
food product
effect
price

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

Revisiting Cash Endowment and House Money Effects in an Experimental Auction of a Novel Agri-food Product in the Philippines. / Depositario, Dinah Pura T; Nayga, Jr, Rodolfo M.; Zhang, Yu Yvette; Mariano, Robert Dominick E.

In: Asian Economic Journal, Vol. 28, No. 2, 01.01.2014, p. 201-215.

Research output: Contribution to journalArticle

Depositario, Dinah Pura T ; Nayga, Jr, Rodolfo M. ; Zhang, Yu Yvette ; Mariano, Robert Dominick E. / Revisiting Cash Endowment and House Money Effects in an Experimental Auction of a Novel Agri-food Product in the Philippines. In: Asian Economic Journal. 2014 ; Vol. 28, No. 2. pp. 201-215.
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