Experimental Auctions: Methods and Applications in Economic and Marketing Research

Economists,psychologists,andmarketersareinterestedindeterminingthemonetaryvaluepeopleplaceonnon-marketgoodsforavarietyofreasons:tocarryoutcost-benefitanalysis,todeterminethewelfareeffectsoftechnologicalinnovationorpublicpolicy,toforecastnewproductsuccess,andtounderstandindividualandconsumerbehavior.Unfortunately,manycurrentlyavailabletechniquesforelicitingindividuals'valuessufferfromaseriousprobleminthattheyinvolveaskingindividualshypotheticalquestionsaboutintendedbehavior.Experimentalauctionscircumventthisproblembecausetheyinvolveindividualsexchangingrealmoneyforrealgoodsinanactivemarket.Thisrepresentsapromisingmeansforelicitingnon-marketvalues.LuskandShogrenprovideacomprehensiveguidetothetheoryandpracticeofexperimentalauctions.Itwillbeavaluableresourcetograduatestudents,practitionersandresearchersconcernedwiththedesignandutilizationofexperimentalauctionsinappliedeconomicandmarketingresearch.