Experimental Auctions
Methods and Applications in Economic and Marketing Research

A comprehensive guide to the theory and practice of experimental auctions.

Jayson L. Lusk (Author), Jason F. Shogren (Author)

9780521855167, Cambridge University Press

Hardback, published 8 November 2007

316 pages, 14 b/w illus. 59 tables
25.3 x 17.9 x 2.3 cm, 0.79 kg

'The book is a comprehensive guide to the theory and practice of experimental auctions. It can be a useful source to graduate students, practitioners and researchers concerned with the design and application of experimental auctions in applied economics, psychology and marketing research. Each chapter contains valuable material drawn from the authors experience of working with experimental auctions. The authors explain underlying theories, discuss practical problems, present the current state of the knowledge on experimental auctions, and do all this in a manner designed to make the presented topics easy to understand and implement.' Zentralblatt MATH

Economists, psychologists, and marketers are interested in determining the monetary value people place on non-market goods for a variety of reasons: to carry out cost-benefit analysis, to determine the welfare effects of technological innovation or public policy, to forecast new product success, and to understand individual and consumer behavior. Unfortunately, many currently available techniques for eliciting individuals' values suffer from a serious problem in that they involve asking individuals hypothetical questions about intended behavior. Experimental auctions circumvent this problem because they involve individuals exchanging real money for real goods in an active market. This represents a promising means for eliciting non-market values. Lusk and Shogren provide a comprehensive guide to the theory and practice of experimental auctions. It will be a valuable resource to graduate students, practitioners and researchers concerned with the design and utilization of experimental auctions in applied economic and marketing research.

1. Introduction
2. Theory of incentive compatible auctions and evidence from induced value experiments
3. Value theory
4. Conducting an experimental auction: some preliminaries
5. Conducting experimental auctions
6. Data analysis with experimental auction bids
7. Valuation case studies
8. Case studies on auction design
9. Validity of experimental auctions
10. Conclusion
Index.

Subject Areas: Econometrics [KCH]