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This paper investigates how subjects determine minimum selling prices for lotteries. We design an experiment where …
Persistent link: https://www.econbiz.de/10004994192
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We compare the standard BDM procedure and a BDM procedure with a restricted range of minimum selling prices that an individual can state. We find that elicited prices are systematically affected by...
Persistent link: https://www.econbiz.de/10005627846