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
Recommended Citation
Corrigan, Jay R.; Rousu, Matthew C.; and Depositario, Dinah Pura T., "Do practice rounds affect experimental auction results?" (2021). Journal Article. 1982.
https://www.ukdr.uplb.edu.ph/journal-articles/1982