The role of training in experimental auctions

Andreas C. Drichoutis, Rodolfo M. Nayga, Jr, Panagiotis Lazaridis

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

Experimental auctions have become a popular tool for applied economists to elicit people's willingness to pay (WTP) for certain goods due to their demand revealing properties. The training phase is an important component of experimental auction studies since there is considerable evidence from Vickrey auctions and induced value experiments that subjects require time and practice to learn the dominant strategy in these auctions. Subjects were also informed that at the end of the choice phase and the lottery auction phase, a randomly generated number would determine which of the two phases would be selected as binding. During the training phase, subjects were shown numerical examples of exactly how their lottery payoffs would be determined. Assuming that our minimal training did not provide adequate training to subjects, or did not provide enough information about the dominant strategic properties of the auction institution, our finding further implies that extensive training could elicit more accurate WTP values from subjects.

Original languageEnglish
Pages (from-to)521-527
Number of pages7
JournalAmerican Journal of Agricultural Economics
Volume93
Issue number2
DOIs
Publication statusPublished - 2011 Jan 1
Externally publishedYes

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auctions
willingness to pay
economists
Experimental auctions
Auctions

ASJC Scopus subject areas

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

Cite this

The role of training in experimental auctions. / Drichoutis, Andreas C.; Nayga, Jr, Rodolfo M.; Lazaridis, Panagiotis.

In: American Journal of Agricultural Economics, Vol. 93, No. 2, 01.01.2011, p. 521-527.

Research output: Contribution to journalArticle

Drichoutis, AC, Nayga, Jr, RM & Lazaridis, P 2011, 'The role of training in experimental auctions', American Journal of Agricultural Economics, vol. 93, no. 2, pp. 521-527. https://doi.org/10.1093/ajae/aaq141
Drichoutis, Andreas C. ; Nayga, Jr, Rodolfo M. ; Lazaridis, Panagiotis. / The role of training in experimental auctions. In: American Journal of Agricultural Economics. 2011 ; Vol. 93, No. 2. pp. 521-527.
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