Value elicitation for multiple quantities of a quasi-public good using open ended choice experiments and uniform price auctions

Levan Elbakidze, Rodolfo M. Nayga, Jr, Hao Li, Chris Mcintosh

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Choice experiments and experimental auctions have become popular mechanisms for estimating willingness to pay (WTP). However, these methods have primarily been used for estimating WTP for single units of goods. We analyze the results from experimental auctions and choice experiments in the context of multiple quantities of a quasi-public good (animal welfare product). We show that the use of WTP values for a single unit of a product, a common practice in experimental valuation literature, can result in underestimation of aggregate demand. We use and compare open ended choice experiments (OECE), second price Vickrey auctions, and random Nth price auctions as mechanisms for valuing WTP. Our results also suggest that individual level demand estimates from OECE are less elastic than demand estimates from uniform price auctions.

Original languageEnglish
Pages (from-to)253-265
Number of pages13
JournalAgricultural Economics (United Kingdom)
Volume45
Issue number2
DOIs
Publication statusPublished - 2014 Jan 1

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auctions
willingness to pay
animal welfare
Choice experiment
Willingness-to-pay
Uniform price auction
Experimental auctions

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

Value elicitation for multiple quantities of a quasi-public good using open ended choice experiments and uniform price auctions. / Elbakidze, Levan; Nayga, Jr, Rodolfo M.; Li, Hao; Mcintosh, Chris.

In: Agricultural Economics (United Kingdom), Vol. 45, No. 2, 01.01.2014, p. 253-265.

Research output: Contribution to journalArticle

Elbakidze, Levan ; Nayga, Jr, Rodolfo M. ; Li, Hao ; Mcintosh, Chris. / Value elicitation for multiple quantities of a quasi-public good using open ended choice experiments and uniform price auctions. In: Agricultural Economics (United Kingdom). 2014 ; Vol. 45, No. 2. pp. 253-265.
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