Auctions for new experiences goods

Very often, consumers a choice between a brand known and established a new brand for which they are uncertain about the quality. Learning about the quality of the new brand can focus on future decisions and, hence, future disbursements. In this article, we study how the uncertainty about the quality of a new brand affects the call for a strategy auction Vickrey (Vickrey 1961), before a new brand on the market.

An auction Vickrey is valued at private auction, where bidders to submit sealed bids. The winner is the highest bid and the price is equal to the second highest bid. Vickrey (1961) showed that in this auction, it is a bit dominant strategy for people to offer their willingness to pay (WTP) for the good of the offer. Encourage people have truly private to reveal their preferences, because the auction separates what they say, what they pay. Underbidding consumers foregoing the purchase of a population at risk, overbidding considering that the risk of a consumer buying unprofitable.

Over the past two decades, the auction Vickrey has been widely used to remove WTP for food quality attributes (for example Alfnes and Rickertsen 2003; Buhr et al. 1993; Fox et al. 1994; Hayes and al. 1995; Hoffman et al. 1993; Lusk, Feldkamp, and Schroeder, 2004; Lusk et al. 2004; Melton et al. 1996; Noussair, Robin and Ruffieux 2004; Roosen et al. 1998; Rousu et al. 2004; Rozan, Stenger, and Willinger 2004; Umberger and Feuz 2004). The charm of the auction Vickrey, the evaluation of the work lies in the fact that there is a demand, which in theory, which are relatively easy to explain, endogenous and has a market clearing price.

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