On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values
Silva, Andres; Nayga, Rodolfo M., Jr.; Campbell, Benjamin L.; Park, John L.
2007

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Abstract

Willingness to pay (WTP) estimates for novel products are needed to assess consumers' valuation of these products as well as for product adoption and optimal pricing strategies. Using experiments in a retail setting, we compare hypothetical and non-hypothetical WTP values between a Becker-DeGroot-Marshak (BDM) auction mechanism and conjoint analysis. Our results suggest that the auction WTP values are higher than conjoint analysis WTP values. Moreover, the hypothetical WTP values are higher than the non-hypothetical WTP values in both elicitation mechanisms.

Details

Title On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values
Keywords
Author(s) Silva, Andres
Nayga, Rodolfo M., Jr.
Campbell, Benjamin L.
Park, John L.
Subject(s)
Issue Date 2007
Publication Type Journal Article
DOI and Other Identifiers 10.22004/ag.econ.8186
Record Identifier https://ageconsearch.umn.edu/record/8186
PURL Identifier http://purl.umn.edu/8186
Language English
Published in International Food and Agribusiness Management Review
Volume 10
Issue 2
Page Range 165 - 180
Total Pages 16
Record Appears in International Food and Agribusiness Management Association (IFAMA) > International Food and Agribusiness Management Review

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