Will Contextual Factors and Providing the Maximum Price Information Affect People’s Actual Willingness-to-pay in BDM Auctions? Evidence from Three Asian Countries

doi:10.5814/j.issn.1674-764x.2016.02.006

Journal of Resources and Ecology ›› 2016, Vol. 7 ›› Issue (2): 115-121.DOI: 10.5814/j.issn.1674-764x.2016.02.006

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Will Contextual Factors and Providing the Maximum Price Information Affect People’s Actual Willingness-to-pay in BDM Auctions? Evidence from Three Asian Countries

JIN Jianjun^{1, *}, FRANCISCO Jamil Paolo², SPOANN Vin³, BUDDHAWONGSA Piyaluk⁴, MA Hua⁵

1. College of Resources Science & Technology, Beijing Normal University, Beijing 100875, China;
2. Washington SyCip Graduate School of Business, Asian Institute of Management, 123 Paseo de Roxas, Makati City, Philippines;
3. Department of Environmental Science, Royal University of Phnom Penh, Russian Federation Blvd. 2640. Cambodia;
4. School of Economics, Chiang Mai University, Chiang Mai 50200, Thailand;
5. College of Geosciences, China University of Petroleum, Beijing 102249, China

Received:2015-12-18 Revised:2016-02-01 Online:2016-04-12 Published:2016-04-12
Contact: * +86-10-58805049; E-mail address: jjjin@bnu.edu.cn (Jin Jianjun).
Supported by:
Beijing university young talent program (YETP0246)

Abstract

Abstract:

The purpose of this study was to measure the effect of maximum price information and contextual factors on people’s bidding behaviors in a controlled Becker-DeGroot-Marschak (BDM) experimental auctions. 354 respondents from three Asian countries (China, Cambodia and the Philippines) participated in this study. In each country, both households with piped water connection and households without piped water connection were investigated. The sample in each country was then randomly assigned to two groups: one group was provided with a maximum price of a water filter and the other group was not provided with the maximum price information. The results show that the treatment group with maximum price information had a higher actual willingness-to-pay than the control group without maximum price information, but they were not significantly different. Our results also indicate that contextual and socioeconomic factors did play a role in participants’ bid results for the water filter.

JIN Jianjun, FRANCISCO Jamil Paolo, SPOANN Vin, BUDDHAWONGSA Piyaluk, MA Hua. Will Contextual Factors and Providing the Maximum Price Information Affect People’s Actual Willingness-to-pay in BDM Auctions? Evidence from Three Asian Countries[J]. Journal of Resources and Ecology, 2016, 7(2): 115-121.

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Will Contextual Factors and Providing the Maximum Price Information Affect People’s Actual Willingness-to-pay in BDM Auctions? Evidence from Three Asian Countries

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