Comparing Open‐Ended Choice Experiments and Experimental Auctions: An Application to Golden Rice

17 Pages Posted: 28 Apr 2020

See all articles by Jay R. Corrigan

Jay R. Corrigan

Kenyon College - Department of Economics

Dinah Pura T. Depositario

University of the Philippines Los Baños - Department of Agribusiness Management

Rodolfo M. Nayga Jr

University of Arkansas

Ximing Wu

affiliation not provided to SSRN

Tiffany P. Laude

University of the Philippines Los Baños

Multiple version iconThere are 2 versions of this paper

Date Written: August 2009

Abstract

We use two experimental valuation methods to estimate consumer demand for genetically modified golden rice. The first is an open‐ended choice experiment (OECE) where participants name the quantities of golden rice and conventional rice demanded at each of several price combinations, one of which will be randomly chosen as binding. This allows us to estimate market demand by aggregating demand across participants. This estimate of market demand also allows us to estimate own‐price elasticity and consumer surplus for golden rice. Comparing willingness‐to‐pay (WTP) estimates from the OECE with those from a uniform‐price auction, we find that OECE WTP estimates exhibit less affiliation across rounds, and the effects of positive and negative information under the OECE are more consistent with prior expectations and existing studies. We also find that, while auction WTP estimates more than double across five rounds, OECE WTP estimates are stable across rounds and are always roughly equal to those from the final auction round.

Keywords: choice experiments, experimental auctions, golden rice, valuation

Suggested Citation

Corrigan, Jay R. and Depositario, Dinah Pura T. and Nayga Jr, Rodolfo M. and Wu, Ximing and Laude, Tiffany P., Comparing Open‐Ended Choice Experiments and Experimental Auctions: An Application to Golden Rice (August 2009). American Journal of Agricultural Economics, Vol. 91, Issue 3, pp. 837-853, 2009, Available at SSRN: https://ssrn.com/abstract=3585811 or http://dx.doi.org/10.1111/j.1467-8276.2009.01267.x

Jay R. Corrigan (Contact Author)

Kenyon College - Department of Economics ( email )

Gambier, OH 43022
United States
740-427-5281 (Phone)
740-427-5276 (Fax)

Dinah Pura T. Depositario

University of the Philippines Los Baños - Department of Agribusiness Management ( email )

College of Economics and Management
UPLB
Los Baños, Laguna 4031
Philippines

Rodolfo M. Nayga Jr

University of Arkansas

Ximing Wu

affiliation not provided to SSRN

No Address Available

Tiffany P. Laude

University of the Philippines Los Baños

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