Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/235274
Authors: 
Burchardi, Konrad B.
de Quidt, Jonathan
Gulesci, Selim
Lerva, Benedetta
Tripodi, Stefano
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 8904
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.
Subjects: 
willingness to pay
Becker-DeGroot-Marschak
field experiment
JEL: 
C90
C93
D44
O12
Document Type: 
Working Paper

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