On the use of valuation mechanisms to measure consumers' willingness to pay for novel products: A comparison of hypothetical and non-hypothetical values

Andres Silva; Rodolfo M. Nayga; Ben L. Campbell; John Park

On the use of valuation mechanisms to measure consumers' willingness to pay for novel products: A comparison of hypothetical and non-hypothetical values

Andres Silva, Rodolfo M. Nayga, Ben L. Campbell, John Park

Department of Food and Resource Economics

Research output: Contribution to journal › Article › peer-review

19 Citations (Scopus)

Abstract

Willingness to pay (WTP) estimates for novel products are needed to assess consumers' valuation of these products as well as for product adoption and optimal pricing strategies. Using experiments in a retail setting, we compare hypothetical and non-hypothetical WTP values between a Becker-DeGroot-Marshak (BDM) auction mechanism and conjoint analysis. Our results suggest that the auction WTP values are higher than conjoint analysis WTP values. Moreover, the hypothetical WTP values are higher than the non-hypothetical WTP values in both elicitation mechanisms.

Original language	English
Pages (from-to)	165-178
Number of pages	14
Journal	International Food and Agribusiness Management Review
Volume	10
Issue number	2
Publication status	Published - 2007

Keywords

Auction
Conjoint analysis
Hypothetical
Non-hypothetical
Willingness-to-pay

ASJC Scopus subject areas

Food Science
Business and International Management

Cite this

On the use of valuation mechanisms to measure consumers' willingness to pay for novel products: A comparison of hypothetical and non-hypothetical values. / Silva, Andres; Nayga, Rodolfo M.; Campbell, Ben L. et al.
In: International Food and Agribusiness Management Review, Vol. 10, No. 2, 2007, p. 165-178.

Research output: Contribution to journal › Article › peer-review

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On the use of valuation mechanisms to measure consumers' willingness to pay for novel products: A comparison of hypothetical and non-hypothetical values

Abstract

Keywords

ASJC Scopus subject areas

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