DP15809 Testing Willingness to Pay Elicitation Mechanisms in the Field: Evidence from Uganda
|Author(s):||Konrad B. Burchardi, Jonathan de Quidt, Selim Gulesci, Benedetta Lerva, Stefano Tripodi|
|Publication Date:||February 2021|
|Keyword(s):||Becker-DeGroot-Marschak, field experiment, Willingness to pay|
|JEL(s):||C90, C93, D44, O12|
|Programme Areas:||Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=15809|
Researchers frequently use variants of the Becker-DeGroot-Marschak (BDM) mechanism to elicit willingness to pay (WTP). These variants involve numerous incentive-irrelevant design choices, some of which carry advantages for implementation but may deteriorate participant comprehension or trust in the mechanism, which are well-known problems with the BDM. We highlight three such features and test them in the field in rural Uganda, a relevant population for many recent applications. Comprehension is very high, and 86 percent of participants bid optimally for an induced-value voucher, with little variation across treatments. This gives confidence for similar applications, and suggests the comprehension-expediency trade-off is mild.