Calibration of willingness-to-accept

This paper calibrates real and hypothetical willingness-to-accept estimates elicited for consumer goods in a multi-unit, random nth-price auction. Using a within-subject experimental design, we find that people understated their real willingness to accept in the hypothetical regimes, framed both as demand and non-demand revealing. After controlling for person-specific effects, however, hypothetical and real statements are equivalent on the margin. (C) 2001 Elsevier Science (USA).