Value-elicitation and value-formation properties of discrete choice experiment and experimental auctions

Simone Cerroni (Corresponding Author), Verity Watson, Dimitrios Kalentakis, Jennie I. Macdiarmid

Research output: Contribution to journalArticle

Abstract

This paper tests if second-price Vickrey auction (SPVA) and discrete choice experiment (DCE) are isomorphic, and whether lack of isomorphism is due to value elicitation, value-formation or both. We conduct an artefactual field experiment that combines induced-value (IV) and home-grown (HG) procedures using SPVA and DCE. Induced-value preferences are elicited for tokens and HG preferences for multi-attribute lasagnes. Attributes are healthiness and environmental sustainability. Our results suggest that HG preferences differ across elicitation methods. This discrepancy is due to value-elicitation and value-formation. DCE is the most demand revealing approach and provides the highest premiums for healthy and environmentally sustainable lasagnes.
Original languageEnglish
Pages (from-to)3-27
Number of pages25
JournalEuropean Review of Agricultural Economics
Volume46
Issue number1
Early online date3 Jul 2018
DOIs
Publication statusPublished - Feb 2019

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auctions
environmental sustainability
testing
Discrete choice experiment
Experimental auctions
methodology

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Value-elicitation and value-formation properties of discrete choice experiment and experimental auctions. / Cerroni, Simone (Corresponding Author); Watson, Verity; Kalentakis, Dimitrios; Macdiarmid, Jennie I.

In: European Review of Agricultural Economics, Vol. 46, No. 1, 02.2019, p. 3-27.

Research output: Contribution to journalArticle

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note = "Acknowledgements We thank Christian Reynolds for his help in organising sessions and running the experiment at the Scottish Experimental Economics Laboratory (SEEL) at University of Aberdeen. We also thank Sylvia Stephen for her help in creating the recipes for the lasagnes and the professional cooks of the Human Nutrition Unit of the Rowett Institute for preparing the final products. We appreciate comments on the approach from Professor Joseph Swierzbinski. We thank three anonymous reviewers and the editor for comments on an earlier draft of this paper. Funding This research was funded by the Scottish Government – Rural Affairs and the Environment Strategic Research (RESAS) – and the Chief Scientist Office of the Scottish Government Health and Care Directorates.",
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