Title

Preference learning in consecutive experimental auctions

Authors

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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