To be(tween) or not to be(tween)? Combining between- and within-subjects design characteristics in preference elicitation for organic and local apples

Drichoutis, Andreas C. and Cerjak, Marija and Kovačić, Damir and Juračak, Josip (2024): To be(tween) or not to be(tween)? Combining between- and within-subjects design characteristics in preference elicitation for organic and local apples.

Abstract

This study examines consumer preferences for organic and local apples by combining between- and within-subject design characteristics in a second price auction. We first ask subjects to bid for 1 Kg of apples without any information. In subsequent rounds we reveal information about the organic or local attributes of apples and then allow subjects to taste the apples. Results show a significant price premium for the organic attribute (but not for the local attribute) once information is provided while tasting does not further increase elicited willingness-to-pay. We also find that the mixed-subject design results in more accurate willingness-to-pay estimates than when we use information from the between-subjects or within-subjects treatments alone. These results highlight the interplay between different quality attributes in consumer decision making and emphasize the gains that can be achieved by combining between- and within-subjects characteristics in experimental auctions.

• Item Type: MPRA Paper
• Language: English
• Keywords: experimental auctions, second (2nd) price auction, SPA, between-subjects random incentive scheme, BRIS
• Subjects: C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C80 - General; C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D44 - Auctions

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