Do practice rounds affect experimental auction results?

Abstract

Researchers use practice rounds to familiarize participants with experimental auction mechanisms. We find a positive correlation between practice bids and bids submitted in later rounds. We consider three explanations for this correlation: a behavioral anchoring effect, a tendency for some auction participants to be more free-spending, and misconception of the experimental auction's demand revealing qualities. © 2014 Elsevier B.V.

Source or Periodical Title

Economics Letters

ISSN

1651765

Page

42-44

Document Type

Article

Subject

Anchoring, Experimental auctions, Misconceptions, Practice rounds, Spendthrift effect

This document is currently not available here.

Share

COinS