Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Zulehner, Christine / Schirle, Tammy

IMPACT FACTOR 2015: 0.250
5-year IMPACT FACTOR: 0.825

SCImago Journal Rank (SJR) 2015: 0.501
Source Normalized Impact per Paper (SNIP) 2015: 0.418
Impact per Publication (IPP) 2015: 0.455

See all formats and pricing


Select Volume and Issue
Loading journal volume and issue information...

30,00 € / $42.00 / £23.00

Get Access to Full Text

Auction Bids and Shopping Choices

Jayson L Lusk1 / Ted C. Schroeder2

1Oklahoma State Universtiy,

2Kansas State University,

Citation Information: Advances in Economic Analysis & Policy. Volume 6, Issue 1, ISSN (Online) 1538-0637, DOI: 10.2202/1538-0637.1539, August 2006

Publication History

Published Online:


Economists and marketers are often interested in estimating demand for new products and in valuing other non-market goods. Due to the increasing recognition that elicited valuations are sensitive to whether decisions are hypothetical, economists have begun to utilize incentive compatible mechanisms with real goods and real money. This paper investigates preferences expressed in two of the most popular elicitation formats: experimental auctions and discrete choice experiments. We compare the bidding behavior of consumers in four different incentive compatible auctions to the behavior of consumers who made non-hypothetical discrete choices between five goods. Despite the fact that the choice task and auction mechanisms are incentive compatible, we find that auction bids were significantly lower, as much as two times lower in many cases, than valuations implied from choices. We also find that auction data imply own-price elasticities of demand for higher quality products that are significantly more elastic than those implied from choice data. Nevertheless, for the five goods evaluated, individuals' preference orderings were consistent across value elicitation methods. These findings hold important implications for economists' view of preferences and may provide some insight into retailers' prevalent use of markets with posted-prices: individuals were more willing to part with their cash when making choices versus bids.

Keywords: auction; choice; experiment; pricing; procedural invariance; valuation

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

J.V. Meenakshi, A. Banerji, Victor Manyong, Keith Tomlins, Nitya Mittal, and Priscilla Hamukwala
Journal of Health Economics, 2012, Volume 31, Number 1, Page 62
Mario F. Teisl and Brian E. Roe
Food Policy, 2010, Volume 35, Number 6, Page 521
Carola Grebitus, Jayson L. Lusk, and Rodolfo M. Nayga
Journal of Economic Psychology, 2013, Volume 36, Page 11
Jay R. Corrigan, Dinah Pura T. Depositario, Rodolfo M. Nayga, Jr, Ximing Wu, and Tiffany P. Laude
American Journal of Agricultural Economics, 2009, Volume 91, Number 3, Page 837

Comments (0)

Please log in or register to comment.