Preference learning in consecutive experimental auctions

    Authors

    J. F. Shogren; J. A. List;D. J. Hayes

    Comments

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    Abbreviated Journal Title

    Am. J. Agr. Econ.

    Keywords

    experimental auctions; preference learning; price premia; SOMATOTROPIN; MARKETS; VALUES; Agricultural Economics & Policy; Economics

    Abstract

    This paper explores the origins of the strikingly high price premia paid for new food products in lab valuation exercises Our experimental design distinguishes between two explanations of this phenomenon: novelty of the experimental experience versus the novelty of the good, i.e., preference learning-bids reflect a person's desire to learn how an unfamiliar good fits into their preference set. Subjects bid in four consecutive experimental auctions for three goods that vary in familiarity, candy bars mangos and irradiated meat. Our results suggest that preference learning is the main source of the high premia, and that novelty of the experimental experience does not in itself artificially inflate valuations.

    Journal Title

    American Journal of Agricultural Economics

    Volume

    82

    Issue/Number

    4

    Publication Date

    1-1-2000

    Document Type

    Article

    Language

    English

    First Page

    1016

    Last Page

    1021

    WOS Identifier

    WOS:000165220700018

    ISSN

    0002-9092

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