Consumer Demand Estimation for Atemoya Using an Experimental Auction

Abstract

This study is intended to elicit consumer willingness to pay for atemoya, a tropical fruit, using an experimental auction method. We employed the BDM mechanism, an incentive-compatible auction-like mechanism, where each respondent's bid is judged by the experimenters independent of other respondents' bids. Average willingness to pay for atemoya was around 760 yen per 500g while the actual retail price level is 1,750 yen. However, such consumer evaluations can be improved when they receive positive information about the healthfulness of atemoya and that atemoya can be cultivated with environmentally friendly methods. We also identified consumers who have a larger preference for atemoya.