Value-elicitation and value-formation properties of discrete choice experiment and experimental auctions

Simone Cerroni, Verity Watson, Dimitrios Kalentakis, Jennie I. Macdiarmid

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This paper tests if Second Price Vickrey Auction (SPVA) and Discrete Choice Experiment (DCE) are isomorphic and whether lack of isomorphism is due to value-elicitation, value-formation or both. We conduct an artefactual field experiment that combines induced-value (IV) and home-grown (HG) procedures using SPVA and DCE. IV preferences are elicited for tokens and HG preferences for multi-attribute lasagnes. Attributes are healthiness and environmental sustainability. Our results suggest that HG preferences differ across elicitation methods. This discrepancy is due to value-elicitation and value-formation. DCE is the most demand-revealing approach and provides the highest premiums for healthy and environmentally sustainable lasagnes.
Original languageEnglish
Pages (from-to)3-27
Number of pages25
JournalEuropean Review of Agricultural Economics
Volume46
Issue number1
Early online date03 Jul 2018
DOIs
Publication statusPublished - 01 Feb 2019

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