Valuation using multiple price list formats

Anderson, S.; Harrison, G.W.; Lau, M.I.; Rutstrom, E.E.

doi:10.1080/00036840500462046

Valuation using multiple price list formats

Anderson, S.; Harrison, G.W.; Lau, M.I.; Rutstrom, E.E.

Authors

S. Anderson

G.W. Harrison

Professor Morten Lau m.i.lau@durham.ac.uk
Professor

E.E. Rutstrom

Abstract

We examine the properties of a popular method for elicitation of valuations from experimental subjects, the multiple price list format. The main advantages of this format are that it is relatively transparent to subjects and provides simple incentives for truthful revelation. The main disadvantages are that it only elicits interval responses, and could be susceptible to framing effects. We consider extensions to address and evaluate these concerns in the context of eliciting willingness to pay for products. We find that the multiple price list can elicit relatively precise valuations for products, and that those valuations are robust to possible framing effects. It therefore offers an attractive procedure for eliciting valuations for goods.

Citation

Anderson, S., Harrison, G., Lau, M., & Rutstrom, E. (2007). Valuation using multiple price list formats. Applied Economics, 39(6), 675-682. https://doi.org/10.1080/00036840500462046

Journal Article Type	Article
Publication Date	Apr 1, 2007
Deposit Date	Aug 21, 2008
Journal	Applied Economics
Print ISSN	0003-6846
Electronic ISSN	1466-4283
Publisher	Taylor and Francis Group
Peer Reviewed	Peer Reviewed
Volume	39
Issue	6
Pages	675-682
DOI	https://doi.org/10.1080/00036840500462046
Public URL	https://durham-repository.worktribe.com/output/1597461