Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 41 - 55 |
| Number of pages | 15 |
| Journal | Advances in Management Applied Economics |
| Volume | 2 |
| Issue number | 4 |
| Publication status | First published - 2012 |
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Keywords
- Endowment effect
- Multi-unit Vickery auctions
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Initial endowment effects in multi-unit Vickery auctions. / Akaichi, F; Nayga, RM; Gil, JM.
In: Advances in Management Applied Economics, Vol. 2, No. 4, 2012, p. 41 - 55.Research output: Contribution to journal › Article
TY - JOUR
T1 - Initial endowment effects in multi-unit Vickery auctions
AU - Akaichi, F
AU - Nayga, RM
AU - Gil, JM
PY - 2012
Y1 - 2012
N2 - We report the result of experiments designed to assess the effect of initial endowments on willingness to pay values elicited from multi-unit Vickrey auctions. Comparing bids from an “endow and upgrade” approach with the “full bidding” approach, we find that the direction of the endowment effect generally depends on the number of endowed units of the conventional product that subjects are willing to give up in exchange for units of the upgraded product. The endowment effect is “reverse” when the number of units that participants are willing to give up is lower or equal to the number of remaining endowed units. However, we generally find an endowment effect when the number of units a participant is willing to give up is higher than the number of remaining endowed units.
AB - We report the result of experiments designed to assess the effect of initial endowments on willingness to pay values elicited from multi-unit Vickrey auctions. Comparing bids from an “endow and upgrade” approach with the “full bidding” approach, we find that the direction of the endowment effect generally depends on the number of endowed units of the conventional product that subjects are willing to give up in exchange for units of the upgraded product. The endowment effect is “reverse” when the number of units that participants are willing to give up is lower or equal to the number of remaining endowed units. However, we generally find an endowment effect when the number of units a participant is willing to give up is higher than the number of remaining endowed units.
KW - Endowment effect
KW - Multi-unit Vickery auctions
M3 - Article
VL - 2
SP - 41
EP - 55
JO - Advances in Management Applied Economics
JF - Advances in Management Applied Economics
IS - 4
ER -