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Field
Experimental Design (Public)
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Before
Experimental design for consumer valuation
The information treatments are employed in an online survey with consumers using a between-subject design. We will also employ two similar non-hypothetical incentive-compatible elicitation methods, only differing by the way the market price is set in a within-subject design: (1) an auction-like and (2) a seller fixed price.
For method (1), we conduct an auction-like method to estimate the maximum Willingness to Pay (WTP) for 8 oz pecan product. This method is the Becker-DeGroot-Marschak (BDM), developed by Becker, et al. (1964) and widely used in experimental economics for understanding the process behind economic choice (Shogren and Lusk, 2007).
For method (2), we estimate WTP using a similar strategy as method (1). The only difference is consumers are told that the market price in the experiment is determined by actual pecan producers. Previous to the online survey, we asked a group of pecan producers their minimum willingness to accept (WTA) to sell the pecan products. Their WTA is then used as the market price in the consumer study.
In sum, for methods (1) and (2), two prices are involved: the offer price of the buyer and a market fixed price. The fixed price is either randomly drawn in the case of method (1) or determined by producers in the case of method (2). Any trade that takes place is for the fixed price. Thus both methods are non-hypothetical and incentive-compatible.
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After
Experimental design for consumer valuation
The information treatments are employed in an online survey with consumers using a between-subject design. We will also employ two similar non-hypothetical incentive-compatible elicitation methods, only differing by the way the market price is set in a within-subject design: (1) a BDM and (2) a seller fixed price.
For method (1), we conduct an auction-like method to estimate the maximum Willingness to Pay (WTP) for 8 oz pecan product. This method is the Becker-DeGroot-Marschak (BDM), developed by Becker, et al. (1964) and widely used in experimental economics for understanding the process behind economic choice (Shogren and Lusk, 2007).
For method (2), we estimate WTP using a similar strategy as method (1). The only difference is consumers are told that the market price in the experiment is determined by actual pecan producers. Previous to the online survey, we asked a group of pecan producers their minimum willingness to accept (WTA) to sell the pecan products. Their WTA is then used as the market price in the consumer study.
In sum, for methods (1) and (2), two prices are involved: the offer price of the buyer and a market fixed price. The fixed price is either randomly drawn in the case of method (1) or determined by producers in the case of method (2). Any trade that takes place is for the fixed price. Thus both methods are non-hypothetical and incentive-compatible.
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