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Jayson L. Lusk

Bio: Jayson L. Lusk is an academic researcher from Purdue University. The author has contributed to research in topics: Willingness to pay & Common value auction. The author has an hindex of 63, co-authored 385 publications receiving 14769 citations. Previous affiliations of Jayson L. Lusk include San Diego State University & West Texas A&M University.


Papers
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Journal ArticleDOI
TL;DR: The authors compared hypothetical and non-hypothetical responses to choice experiment questions and found that the hypothetical responses predicted higher probabilities of purchasing beef steaks than non-homogeneous responses, and that the marginal willingness to pay for a change in steak quality is not statistically different across hypothetical and actual payment settings.
Abstract: This study compares hypothetical and nonhypothetical responses to choice experiment questions. We test for hypothetical bias in a choice experiment involving beef ribeye steaks with differing quality attributes. In general, hypothetical responses predicted higher probabilities of purchasing beef steaks than nonhypothetical responses. Thus, hypothetical choices overestimate total willingness-to-pay for beef steaks. However, marginal willingness-to-pay for a change in steak quality is, in general, not statistically different across hypothetical and actual payment settings.

793 citations

Journal ArticleDOI
TL;DR: The authors compared consumer valuations of beef ribeye steaks from cattle produced without growth hormones or genetically modified corn in France, Germany, the United Kingdom, and the United States, and found that French consumers placed a higher value on beef from cattle that have not been administered added growth hormones than U.S. consumers.
Abstract: We compare consumer valuations of beef ribeye steaks from cattle produced without growth hormones or genetically modified corn in France, Germany, the United Kingdom, and the United States. Results suggest that French consumers place a higher value on beef from cattle that have not been administered added growth hormones than U.S. consumers; however, valuations of non-hormone-treated beef are statistically indistinguishable across Germany, the United Kingdom, and the United States. Results also suggest that European consumers place a much higher value on beef from cattle that have not been fed genetically modified corn than U.S. consumers. Copyright 2003, Oxford University Press.

665 citations

Journal ArticleDOI
TL;DR: The authors explored the effect of cheap talk in a mass mail survey using a conventional value elicitation technique and found that cheap talk was effective at reducing willingness to pay for most survey participants.
Abstract: A large body of literature suggests willingness-to-pay is overstated in hypothetical valuation questions as compared to when actual payment is required. Recently, "cheap talk" has been proposed to eliminate the potential bias in hypothetical valuation questions. Cheap talk refers to process of explaining hypothetical bias to individuals prior to asking a valuation question. This study explores the effect of cheap talk in a mass mail survey using a conventional value elicitation technique. Results indicate that cheap talk was effective at reducing willingness-to-pay for most survey participants; however, consistent with previous research, cheap talk did not reduce willingness-to-pay for knowledgeable consumers.

570 citations

Book
01 Jan 2007
TL;DR: Experimental auctions circumvent this problem by allowing individuals to exchange real money for real goods in an active market as mentioned in this paper, which represents a promising means for eliciting non-market values, and is a valuable resource to graduate students, practitioners and researchers concerned with the design and utilization of experimental auctions in applied economic and marketing research.
Abstract: Economists, psychologists, and marketers are interested in determining the monetary value people place on non-market goods for a variety of reasons: to carry out cost-benefit analysis, to determine the welfare effects of technological innovation or public policy, to forecast new product success, and to understand individual and consumer behavior. Unfortunately, many currently available techniques for eliciting individuals' values suffer from a serious problem in that they involve asking individuals hypothetical questions about intended behavior. Experimental auctions circumvent this problem because they involve individuals exchanging real money for real goods in an active market. This represents a promising means for eliciting non-market values. Lusk and Shogren provide a comprehensive guide to the theory and practice of experimental auctions. It will be a valuable resource to graduate students, practitioners and researchers concerned with the design and utilization of experimental auctions in applied economic and marketing research.

445 citations

Posted ContentDOI
TL;DR: In this paper, a meta-analysis was conducted of 25 studies that, in aggregate, report 57 valuations for GM food and found that 89% of the variation in existing value estimates for genetically modified food can be explained by an econometric model that controls for the characteristics of the sample of consumers studied, the method for eliciting consumers' valuation, and characteristics of foods being valued.
Abstract: A plethora of research in recent years has been devoted to estimating consumer demand for genetically modified food, an important piece of information needed to create appropriate public policy. To examine this body of work, a meta-analysis was conducted of 25 studies that, in aggregate, report 57 valuations for GM food. F!indings indicate as much as 89% of the variation in existing value estimates for genetically modified food can be explained by an econometric model that controls for (a) the characteristics of the sample of consumers studied, (b) the method for eliciting consumers' valuation, and (c) characteristics of the food being valued. Each of these factors has a statistically significant effect on estimated premiums for non-GM food. Results of this study effectively summarize the extant literature on consumer demand for genetically modified food and permit the creation of some stylized facts that are not conditional on the results of one particular study. This paper also illustrates the effect of methodological choices on valuation estimates and reports a model which allows researchers and policy makers to quickly generate valuation measures for use in marketing or costhenefit analysis.

412 citations


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Book
01 Jan 2009

8,216 citations

Journal Article
TL;DR: Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of the authors' brain’s wiring.
Abstract: In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

4,351 citations

Posted Content
TL;DR: In this article, the authors introduce the concept of ''search'' where a buyer wanting to get a better price, is forced to question sellers, and deal with various aspects of finding the necessary information.
Abstract: The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.

3,790 citations