Quick and easy? Respondent evaluations of the Becker–DeGroot–Marschak and multiple price list valuation mechanisms

Daniele Asioli; Adriana Mignani; Frode Alfnes

doi:10.1002/agr.21668

journal article Open Access Sep 07, 2020

Quick and easy? Respondent evaluations of the Becker–DeGroot–Marschak and multiple price list valuation mechanisms

Daniele Asioli

Adriana Mignani

Frode Alfnes

Agribusiness Vol. 37 No. 2 pp. 215-234 · Wiley

View at Publisher Save 10.1002/agr.21668

Abstract

AbstractThis article is the first to investigate respondents' ease of understanding and answering valuation questions related to the Becker–DeGroot–Marschak (BDM) and multiple price list mechanisms. Using a between‐subjects design, we elicit willingness to pay (WTP) for healthy snack bars using two mechanisms, ask questions about ease of understanding and answering the valuation questions, and record the response times to the valuation questions. We do not find significant differences in estimated WTP and response times between the two methods. However, the respondents in the multiple price list (MPL) sessions found it easier to understand this mechanism and decide on a response than those in the BDM sessions. As a result of our findings, we recommend that MPL is adopted over BDM when there is limited opportunity to explain or learn the method before the valuation or when one is concerned that a complicated design can affect the willingness to participate and thereby create selection bias. Both concerns will often apply when small and medium size agribusinesses conduct market testing of their products in stores or field markets. [EconLit Citations: C18, C19, D44, Q13].

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References

Details

Published: Sep 07, 2020
Vol/Issue: 37(2)
Pages: 215-234
License: View

Authors

D

Daniele Asioli

Department of Applied Economics and Marketing, School of Agriculture Policy and Development University of Reading Reading United Kingdom

A

Adriana Mignani

Research & Development Macè srl Terre del Reno Italy

F

Frode Alfnes

School of Economics and Business Norwegian University of Life Sciences Ås Norway

Cite This Article

Daniele Asioli, Adriana Mignani, Frode Alfnes (2020). Quick and easy? Respondent evaluations of the Becker–DeGroot–Marschak and multiple price list valuation mechanisms. Agribusiness, 37(2), 215-234. https://doi.org/10.1002/agr.21668

Quick and easy? Respondent evaluations of the Becker–DeGroot–Marschak and multiple price list valuation mechanisms

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