Thursday, February 6, 2014

Do practice rounds affect experimental auction results?

That's the title of my newest publication, which is joint work with Jay Corrigan and Dinah Depositario.

Link here

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.

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