Using Laboratory Experimental Auctions in Marketing Research: A Case Study of New Packaging for Fresh Beef

Elizabeth Hoffman, Dale J. Menkhaus, Dipankar Chakravarti, Ray A. Field and Glen D. Whipple
Additional contact information
Dale J. Menkhaus: University of Wyoming
Dipankar Chakravarti: University of Arizona
Ray A. Field: University of Wyoming
Glen D. Whipple: University of Wyoming

Marketing Science, 1993, vol. 12, issue 3, 318-338

Abstract: This paper illustrates the use of laboratory experimental auctions in a pretest market research program for new products. We review the experimental auctions literature, discuss the range of auction mechanisms available and present the advantages and disadvantages of using a particular mechanism for a laboratory pretest market. We then present a step-by-step example of how a theoretically incentive compatible auction mechanism (fifth-price, sealed-bid) was used in a laboratory pretest market for vacuum-packaged beef. Based on the illustration, we discuss the potential for using laboratory experimental auctions in pretest market research. We present the limitations that may be encountered in such applications and outline research aimed at improving the behavioral properties of the technique.

Keywords: auctions; pretest market (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (96)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:12:y:1993:i:3:p:318-338

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