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1 March 2016 Will Contextual Factors and Providing the Maximum Price Information Affect People's Actual Willingness-to-Pay in BDM Auctions? Evidence from Three Asian Countries
Jin Jianjun, Francisco Jamil Paolo, Spoann Vin, Buddhawongsa Piyaluk, Ma Hua
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Abstract

The purpose of this study was to measure the effect of maximum price information and contextual factors on people's bidding behaviors in a controlled Becker-DeGroot-Marschak (BDM) experimental auctions. 354 respondents from three Asian countries (China, Cambodia and the Philippines) participated in this study. In each country, both households with piped water connection and households without piped water connection were investigated. The sample in each country was then randomly assigned to two groups: one group was provided with a maximum price of a water filter and the other group was not provided with the maximum price information. The results show that the treatment group with maximum price information had a higher actual willingness-to-pay than the control group without maximum price information, but they were not significantly different. Our results also indicate that contextual and socioeconomic factors did play a role in participants' bid results for the water filter.

Jin Jianjun, Francisco Jamil Paolo, Spoann Vin, Buddhawongsa Piyaluk, and Ma Hua "Will Contextual Factors and Providing the Maximum Price Information Affect People's Actual Willingness-to-Pay in BDM Auctions? Evidence from Three Asian Countries," Journal of Resources and Ecology 7(2), 115-121, (1 March 2016). https://doi.org/10.5814/j.issn.1674-764x.2016.02.006
Received: 18 December 2015; Accepted: 1 February 2016; Published: 1 March 2016
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KEYWORDS
BDM
contextual factors
experimental auction
maximum price information
willingness to pay
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