Title

Auction Mechanisms And The Measurement Of Wtp And Wta

Keywords

Auction; Endowment effect; Random nth-price auction; Willingness to accept; Willingness to pay

Abstract

We evaluate the impact of three auction mechanisms-the Becker-DeGroot-Marschak mechanism, the second-price auction, and the random nth-price auction - in the measurement of willingness to pay (WTP) and willingness to accept (WTA) measures of value. Our results show that initial bidding in trial 1 in each auction does not contradict the endowment effect; but that, if it is the endowment effect that governs people's initial bidding behavior, it can be eliminated with repetitions of a second-price or random nth-price auction; and if the thesis is that the effect should persist across auctions and across trials is right, our results suggest that there is no fundamental endowment effect. © 2001 Elsevier Science B.V. All rights reserved.

Publication Date

4-1-2001

Publication Title

Resource and Energy Economics

Volume

23

Issue

2

Number of Pages

97-109

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/S0928-7655(00)00038-5

Socpus ID

0035314602 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0035314602

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