We evaluate the effects of monetary and nonmonetary endowments on willingness to pay (WTP) bids in Becker-DeGroot-Marschak (BDM) experimental auctions. Results indicate that subjects provided with a monetary endowment bid more than those that received a nonmonetary endowment.

We examine the effect of earned participation rewards on willingness to pay (WTP) bids in experimental auctions. Our results show that when subjects are provided with a fixed reward, they bid more than those who had to earn their reward.