Conference paper

Authors list: Dolgopolova, Irina; Teuber, Ramona; Roosen, Jutta

Publication year: 2017

DOI Link: https://doi.org/10.22004/ag.econ.260882

Conference: European Association of Agricultural Economists (EAAE) 2017 International Congress

Abstract: 

We assess the role of perceived reference price (PRP) in consumers’ valuations for four different bread types in secondprice Vickrey auctions taking into account the presence of market substitutes. A possible censoring effect of perceived reference price is modeled using a random effects Tobit model with lower and upper thresholds. The estimates are compared to a random effects Tobit model censored at zero only. In contrast to the existing literature, our results indicate that including perceived reference price in upper threshold does not improve the model fit and thus question the role of PRP as an upper limit for auction bids.

Harvard Citation style: Dolgopolova, I., Teuber, R. and Roosen, J. (2017) The Reference Price Is Not The Limit: Analysis Of Consumer Valuations In Second-price Vickrey Auction, European Association of Agricultural Economists (EAAE) 2017 International Congress, Parma, Italy, August 28 - September 1, 2017. https://doi.org/10.22004/ag.econ.260882

APA Citation style: Dolgopolova, I., Teuber, R., & Roosen, J. (2017, August 28 - September 1, 2017). The Reference Price Is Not The Limit: Analysis Of Consumer Valuations In Second-price Vickrey Auction. European Association of Agricultural Economists (EAAE) 2017 International Congress, Parma, Italy. https://doi.org/10.22004/ag.econ.260882