Abstract
We compare the Becker-DeGroot-Marschak (BDM) mechanism to a discrete choice mechanism for revealing willingness to pay (WTP) in a lab experiment. Differences in WTP disappear when considering only engaged bidders with non-zero bids. Only WTP elicited with BDM are sensitive to the variation of quantity offered to participants.
| Original language | English |
|---|---|
| Pages (from-to) | 1554-1563 |
| Number of pages | 10 |
| Journal | Economics Bulletin |
| Volume | 30 |
| Issue number | 2 |
| State | Published - 2010 |