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Experimental Methods and Elicitation of Values

Published online by Cambridge University Press:  14 March 2025

Glenn W. Harrison,
Ronald M. Harstad and
E. Elisabet Rutström
Glenn W. Harrison*
Affiliation:
Department of Economics, College of Business Administration, University of Central Florida, Orlando, Florida, USA
Ronald M. Harstad*
Affiliation:
Department of Economics, University of Missouri-Columbia, Columbia, Missouri, USA
E. Elisabet Rutström*
Affiliation:
Department of Economics, College of Business Administration, University of Central Florida, Orlando, Florida, USA
*
email: Gharrison@bus.ucf.edu
email: harstadr@missouri.edu
email: Erutstrom@bus.ucf.edu
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Abstract

Experimental methods are currently being extensively used to elicit subjective values for commodities and projects. Three methodological problems are not systematically addressed in this emerging literature. The first is the potential for laboratory responses to be censored by field opportunities, so that lab responses can be confounded by uncontrolled knowledge of the field; the second is the potential for subjective perceptions about field opportunities, and hence valuation responses, to be affected by the institution used to elicit values; and the third is the potential for some elicitation institutions to influence subjective perceptions of characteristics of the commodity or project being valued, and hence change the very commodity being valued. All three problems result in potential loss of control over the value elicitation process. For example, we show that censoring affects conclusions drawn in a major study of beef packaging valuation. We derive implications for experimental designs that minimize the potential effect of these methodological problems.

Keywords

experimentsvaluationauctionsincentive-compatibility

JEL classification

B4: Economic MethodologyD8: Information, Knowledge, and UncertaintyC9: Design of Experiments

Information

Type
Research Article
Information
Experimental Economics , Volume 7 , Issue 2 , June 2004, pp. 123 - 140
Copyright
Copyright © 2004 Economic Science Association

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Footnotes

*

Author to whom correspondence should be addressed.

†

Rutström thanks the U.S. National Science Foundation for research support under grants NSF/IIS 9817518, NSF/MRI 9871019 and NSF/POWRE 9973669. We are grateful for comments from two referees.

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