 Quick and easy? Respondent evaluations of the Becker–DeGroot–Marschak and multiple price list valuation mechanismsDaniele Asioli, Adriana Mignani and Frode Alfnes Agribusiness, 2021, vol. 37, issue 2, 215-234 Abstract: This 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]. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:37:y:2021:i:2:p:215-234 Access Statistics for this article Agribusiness is currently edited by Ronald W. Cotterill More articles in Agribusiness from John Wiley & Sons, Ltd. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.