The role of training in experimental auctions
Abstract
Experimental auctions have become a popular tool used by applied economists to elicit people’s willingness to pay (WTP) for certain goods due to their demand revealing properties. Participating in experimental auctions is, however, often a dubious task for unfamiliar subjects. While most subjects are probably familiar with the structure of an English auction, they most likely have never participated in a Vickrey auction typically used in experimental auctions. This is the reason why most experimenters employ a training phase that precedes the actual valuation task. In this paper, we examine the effect of training on bidding behavior and find that training significantly increases bids. Implications are discussed.
Suggested Citation
Andreas C. Drichoutis, Rodolfo M. Nayga Jr., and Panagiotis Lazaridis. "The role of training in experimental auctions" American Journal of Agricultural Economics 93.2 (2011): 521-527.
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