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Does Winning an Experimental Auction Change People's Behavior? An Application to E-cigarettes
Richard J O'Connor1, Matthew C Rousu2, Jay R Corrigan3
1Department of Health Behavior, Roswell Park Comprehensive Cancer Center.
Journal of Economic Behavior & Organization
|March 30, 2019
Summary
Experimental auctions revealed that e-cigarette auction winners were more likely to use these products long-term, without increasing daily cigarette smoking. This highlights potential product discovery effects.
Area of Science:
- Behavioral Economics
- Public Health
- Tobacco Control
Background:
- Experimental auctions offer a non-hypothetical method to assess product demand.
- Real purchase consequences in auctions can lead to product discovery.
- Understanding e-cigarette adoption is crucial for public health interventions.
Purpose of the Study:
- To evaluate the long-term impact of experimental e-cigarette auctions on product use.
- To determine if auction participation influences continued e-cigarette adoption.
- To assess the relationship between e-cigarette auction participation and daily cigarette smoking.
Main Methods:
- Conducted an experimental auction with 432 participants bidding on e-cigarettes.
- Tracked participants' e-cigarette and cigarette use at multiple follow-up points (2 weeks, 6 weeks, 6 months).
- Controlled for prior e-cigarette use, demand strength, and demographics.
Main Results:
- Auction winners showed significantly higher rates of e-cigarette use at all follow-up points.
- No significant difference in daily cigarette smoking rates was observed between winners and non-winners.
- These findings persisted after controlling for initial demand and user characteristics.
Conclusions:
- Experimental auctions can drive sustained e-cigarette use, suggesting a product discovery pathway.
- Auction design may influence long-term adoption of novel products like e-cigarettes.
- Further research is needed to understand the public health implications of such market simulations.