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Testing Willingness to Pay Elicitation Mechanisms in the Field: Evidence from Uganda

Author

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  • Konrad B. Burchardi
  • Jonathan de Quidt
  • Selim Gulesci
  • Benedetta Lerva
  • Stefano Tripodi

Abstract

Researchers frequently use variants of the Becker-DeGroot-Marschak (BDM) mechanism to elicit willingness to pay (WTP). These variants involve numerous incentive-irrelevant design choices, some of which carry advantages for implementation but may deteriorate participant comprehension or trust in the mechanism, which are well-known problems with the BDM. We highlight three such features and test them in the field in rural Uganda, a relevant population for many recent applications. Comprehension is very high, and 86 percent of participants bid optimally for an induced-value voucher, with little variation across treatments. This gives confidence for similar applications, and suggests the comprehension-expediency trade-off is mild.

Suggested Citation

  • Konrad B. Burchardi & Jonathan de Quidt & Selim Gulesci & Benedetta Lerva & Stefano Tripodi, 2021. "Testing Willingness to Pay Elicitation Mechanisms in the Field: Evidence from Uganda," CESifo Working Paper Series 8904, CESifo.
    • Handle: RePEc:ces:ceswps:_8904
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    9. Diekert, Florian & Eymess, Tillmann & Goeschl, Timo & Gómez-Cardona, Santiago & Luomba, Joseph, 2022. "Subsidizing Compliance: A Multi-Unit Price List Mechanism for Legal Fishing Nets at Lake Victoria," Working Papers 0711, University of Heidelberg, Department of Economics.
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    More about this item

    Keywords

    willingness to pay; Becker-DeGroot-Marschak; field experiment;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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