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Willingness to Pay for Multiple Quantities of Animal Welfare Dairy Products: Results from Random N th‐, Second‐Price, and Incremental Second‐Price Auctions
Author(s) -
Elbakidze Levan,
Nayga Rodolfo M.,
Li Hao
Publication year - 2013
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.2012.01263.x
Subject(s) - bidding , common value auction , willingness to pay , microeconomics , economics , vickrey auction , contrast (vision) , certification , animal welfare , business , auction theory , computer science , biology , ecology , management , artificial intelligence
Nonhypothetical experimental auctions are used to elicit willingness to pay for humane animal care‐certified dairy products: cheese and ice cream. We use second‐price, random Nth‐price, and incremental second‐price auctions in multiproduct, multiquantity, and multiround contexts. The results contrast participants’ bids across different auction mechanisms and different products. Differences in bidding patterns are detected across auction mechanisms as well as products. Our results suggest that subjects on average are only willing to pay a premium price for one unit of humane animal case‐certified ice cream but not for multiple quantities.