THE EXTERNAL VALIDITY OF EXPERIMENTAL ECONOMICS TECHNIQUES: ANALYSIS OF DEMAND BEHAVIOR

Authors

  • DAVID S. BROOKSHIRE,

  • DON L. COURSEY,

  • WILLIAM D. SCHULZE

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    • *Professor, University of Wyoming, Associate Professor, School of Business, Washington University, and Professor, University of Colorado-Boulder. The authors acknowledge the support of the United States Environmental Protection Agency through a project entitled “Experimental Methods for Assessing Environmental Benefits.” Comments by Raymond Battalio, Colin Camerer, Shelby Gerking, Elizabeth Hoffman, Howard Kunreuther, Charles Plott, James Walker, and two referees on earlier drafts of this paper helped to greatly improve the manuscript. Thanks are also due to George Cutts, Mark Dickie, John Hovis, Chari Pepin, and Karen Radosevich for their assistance in conducting the surveys and experiments reported in the paper. All opinions and conclusions contained in the paper are the sole responsibility of the authors.


Abstract

This paper examines the parallelism which exists between demand behavior determined from the sale of a private good in an actual “real world” field setting and in a laboratory auction setting. The demand behavior observed in the two settings is significantly the same leading to the corroboration of the thesis that there is often correspondence between laboratory and real world behavior.

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