de Meza, David 
ORCID: 0000-0002-5638-8310 and Reyniers, Diane J. ORCID: 0000-0003-0677-2020
(2013)
Debiasing the Becker – DeGroot – Marschak valuation mechanism.
Economics Bulletin, 33 (2).
pp. 1446-1456.
ISSN 1545-2921
Abstract
This experiment finds that the Becker-DeGroot-Marschak (BDM) (1964) valuation mechanism under-predicts the proportion of subjects choosing cash over an item. The extent of the divergence is increasing in risk aversion, which is consistent with reference dependent preferences. This suggests a reframing of the BDM to improve its performance. The modified BDM mechanism is found to better match choices at a single offer price (SOP).
| Item Type: | Article |
|---|---|
| Official URL: | http://ideas.repec.org/s/ebl/ecbull.html |
| Additional Information: | © 2013 The Authors |
| Divisions: | Management |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | C - Mathematical and Quantitative Methods > C9 - Design of Experiments D - Microeconomics > D8 - Information, Knowledge, and Uncertainty |
| Date Deposited: | 31 Jul 2013 09:05 |
| Last Modified: | 01 Oct 2024 03:40 |
| URI: | http://eprints.lse.ac.uk/id/eprint/51250 |
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