Testing Whether Field Auction Experiments Are Demand Revealing In Practice
Author(s)
- Jay R Corrigan
- Matthew C Rousu
Full TextAbstract
Recent evidence suggests that participants' misunderstanding of experimental auction mechanisms can systematically bias auction results. We present a simple technique for testing whether field auction participants fully understand the demand-revealing nature of the auction mechanism and, by extension, whether auction bids provide an unbiased estimate of participants' willingness to pay.