Table 6 - uploaded by Wen S. Chern
Content may be subject to copyright.
Source publication
The purpose of this study is to compare the random nth-price auction with the widely used Vickrey second-price auction in an empirical application. It has been shown that the second-price auction does not induce sincere bidding for those who are off-margin of the market clearing price. The random nth-price auction can correct this drawback. These t...
Context in source publication
Context 1
... order to validate this claim, we asked them about which tea they liked the most and which was the second best right after their tasting, but before knowing COO. Their rankings are summarized in Table 6. Even though the #1 tea (which is from Taiwan) received the most favorable ranking (42% ranked it the first), many other people liked #2 (Vietnam) and #3 (China) the most. ...
Citations
... Few studies have used non-hypothetical methods to estimate the effects of intangible factors in consumers' WTP for wine (Bradley et al., 2015). In this study, we used the random nth price auction method (Shogren et al., 2001;List, 2003) since this method is incentive-compatible and widely used in many empirical evaluation studies (Huffman et al., 2003;Capra et al., 2010;Chern et al., 2013). Participants do not know the winning position until all the bids have been submitted, thus removing the competitive biases that might exist in other experimental auction mechanisms, such as the secondprice auction (Shogren et al., 2001). ...
In the wine sector, experiential marketing is becoming increasingly important since the success of a wine hinges on “experiential” attributes that include hedonic and symbolic values associated with emotions. An aspect not yet fully explored in the scientific literature concerns the extent to which emotions aroused by the environment where wine is consumed are able to influence consumers’ evaluation of wine. To this end, we conducted an economic experiment in Italy in the territory of Mt Etna, Sicily and through a non-hypothetical experimental auction we assessed the effects of 10 emotions related to the environment of Mt Etna on consumers’ Willingness to Pay (WTP) for Etna wine. The results of this study show that the values of consumers’ WTP for wine are affected by emotions aroused by the experiential environment of Mt Etna.
... This holds for industrialized as well as emerging countries, such as Taiwan. In Taiwan, food scares and scandals, such as food adulteration [1], food-borne contamination [2], counterfeiting [3], and mislabeling [4], have induced consumer distrust and concerns regarding the quality and safety of food. Additionally, high-and in parts, improper-use of chemical inputs in Taiwanese agriculture [5] has led to illegal levels of chemical residues in food products, with considerable danger for the immediate and long-term health of consumers [6]. ...
... Specific trust refers to trust specifically related to the given referent (i.e., trust to the institution or the company) while general trust is presented as trust towards an object or a group entity. Based on the previous literature, consumer trust can also be divided into four conceptual dimensions: (1) Trust belief [64][65][66][67][68]; (2) trust intention [59,64,65,[68][69][70][71]; (3) institutional-based trust [59,64,65,68,69,72]; and (4) general trust [28,59,64,65,68,70,[73][74][75]. According to Moorman et al. [76], psychological and sociological aspects are the two key components characterizing trust in the marketing area. ...
This paper presents empirical findings from a combination of two elicitation techniques—discrete choice experiment (DCE) and best–worst scaling (BWS)—to provide information about the role of consumers’ trust in food choice decisions in the case of credence attributes. The analysis was based on a sample of 459 Taiwanese consumers and focuses on red sweet peppers. DCE data were examined using latent class analysis to investigate the importance and the utility different consumer segments attach to the production method, country of origin, and chemical residue testing. The relevance of attitudinal and trust-based items was identified by BWS using a hierarchical Bayesian mixed logit model and was aggregated to five latent components by means of principal component analysis. Applying a multinomial logit model, participants’ latent class membership (obtained from DCE data) was regressed on the identified attitudinal and trust components, as well as demographic information. Results of the DCE latent class analysis for the product attributes show that four segments may be distinguished. Linking the DCE with the attitudinal dimensions reveals that consumers’ attitude and trust significantly explain class membership and therefore, consumers’ preferences for different credence attributes. Based on our results, we derive recommendations for industry and policy.
... In this study, we used the random nth price auction method (Shogren, Margolis, Koo, & List, 2001) since this method is incentivecompatible and widely used in many empirical valuation studies (e.g., Capra, Lanier, & Meer, 2010;Chern, Hong, & Liu, 2013;Huffman, Shogren, Rousu, & Tegene, 2003). Participants do not know the winning position until all bids have been submitted, thus removing the competitive biases that might exist in other experimental auction mechanisms, such as the second-price auction (Shogren et al., 2001). ...
In this study, we conducted an experimental auction to determine the impacts that “experiential augmentation,” a phenomenon in which a physical location impacts decision‐making, has on consumers’ willingness to pay (WTP) for wine. The experiment elicited subjects’ valuation under experiential augmentation conditions for three types of wine grown in the Mt. Etna area in Sicily, Italy. Our findings indicate that experiential augmentation increased consumers’ WTP for wine. Our results suggest that experiential marketing practices explicitly related to the environment where the wine is produced and consumed can lead to increased valuation for wine.
... After the offers are ranked, winners purchase goods that are put up for auction at an nth-person's price. Valuation with the use of the nth-price auction is characterized by high credibility, as the best strategy for the bidder is to announce the actual price at which they are willing to purchase a specific product (Chern et al., 2013). ...
The article refers to the issue of the endowment effect, which acts as a mechanism that influences valuation. The paper’s main aim is to verify the endowment effect phenomenon for branded, fast-moving consumer goods. The subject of this paper also includes examining whether short-term possession, generates the endowment effect. It also studies how the possibility of using a product influences the power of the examined phenomenon. In order to verify the proposed hypothesis, an economic experiment was used. Its results were analyzed with the use of descriptive statistics and econometric methods. The study demonstrated that the endowment effect determines the perception of goods and influences their valuation.
