Title

Preference Learning In Consecutive Experimental Auctions

Keywords

Experimental auctions; Preference learning; Price premia

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. Copyright 2000 American Agricultural Economics Association.

Publication Date

1-1-2000

Publication Title

American Journal of Agricultural Economics

Volume

82

Issue

4

Number of Pages

1016-1021

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/0002-9092.00099

Socpus ID

0009412810 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0009412810

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