Are decisions in a real choice experiment consistent with reservation prices elicited with BDM `auction'? The case of French baguettes

The aim of this study was to compare consumer choices observed in a real choice experiment and their reservation prices elicited with the BDM mechanism in order to assess the rationality of participant behaviors. One hundred and seventy-seven participants tested four French baguettes in each task. For the real choice experiment, participants were faced with 17 scenarios (17 x 4 baguette-price combinations). In each method, participants could select a ``no purchase'' option. Comparing choices and reservation prices made it possible to assess the rationality of participant behaviors. From a strict economic standpoint, 50% of observed choices were fully rational. When one baguette was actually chosen, the main choice strategy was preference maximization (42.2%), followed by price minimization (26.2%), and then by the combination of both (10.5%); the remaining choices (21.1%), for which no clear strategy could be found, were considered puzzling. (C) 2011 Elsevier Ltd. All rights reserved.