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To be(tween) or not to be(tween)? Combining between- and within-subjects design characteristics in preference elicitation for organic and local apples

Author

Listed:
  • Drichoutis, Andreas C.
  • Cerjak, Marija
  • Kovačić, Damir
  • Juračak, Josip

Abstract

This study examines consumer preferences for organic and local apples by combining between- and within-subject design characteristics in a second price auction. We first ask subjects to bid for 1 Kg of apples without any information. In subsequent rounds we reveal information about the organic or local attributes of apples and then allow subjects to taste the apples. Results show a significant price premium for the organic attribute (but not for the local attribute) once information is provided while tasting does not further increase elicited willingness-to-pay. We also find that the mixed-subject design results in more accurate willingness-to-pay estimates than when we use information from the between-subjects or within-subjects treatments alone. These results highlight the interplay between different quality attributes in consumer decision making and emphasize the gains that can be achieved by combining between- and within-subjects characteristics in experimental auctions.

Suggested Citation

  • Drichoutis, Andreas C. & Cerjak, Marija & Kovačić, Damir & Juračak, Josip, 2024. "To be(tween) or not to be(tween)? Combining between- and within-subjects design characteristics in preference elicitation for organic and local apples," MPRA Paper 120880, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120880
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    More about this item

    Keywords

    experimental auctions; second (2nd) price auction; SPA; between-subjects random incentive scheme; BRIS;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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