The Role of Confidence in Truthful Revelation of Private Values
| Autor: | Parkhurst, Gregory M., Nowell, Clifford |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2014 |
| Předmět: |
Consumer/Household Economics
Resource /Energy Economics and Policy BDM Demand and Price Analysis induced value Becker-DeGroot-Marschak mechanism truthful revelation willingness to accept Agricultural and Food Policy Environmental Economics and Policy confidence willingness to pay Institutional and Behavioral Economics Research Methods/ Statistical Methods Food Consumption/Nutrition/Food Safety |
| DOI: | 10.22004/ag.econ.177959 |
| Popis: | Recent research shows that disparities between willingness to pay (WTP) and willingness to accept (WTA) disappear with market experience and training. In effect, preferences can be refined by eliminating subjects’ misconceptions regarding elicitation procedures. We use a stated measure of confidence as a proxy for misconceptions and test the influence of confidence on truthful revelation of induced values in WTP and WTA auctions using the Becker-DeGroot-Marschak (BDM) mechanism. The results indicate that confidence matters for buyers and sellers. With confidence, WTA and WTP measures converge, and people with greater confidence choose the dominant bidding strategy more frequently. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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