Retesting the Uncertainty Effect Using Lotteries with Real Products and Money

12 Pages Posted: 8 May 2013

See all articles by Uri Benzion

Uri Benzion

Western Galilee College - Department of Economics

Shosh Shahrabani

Emek Yezreel College - Department of Economics

Tal Shavit

College of Management (Israel)

Date Written: May 2013

Abstract

In the current study, several experiments re‐examine the uncertainty effect using lotteries that include real products, monetary outcomes and electronic gift cards in a between‐subjects design. The study also takes the selling position into consideration, in addition to the buying position considered by all previous works on the uncertainty effect. The results indicate that for all types of lotteries, the bids are higher than the bids for the worst possible realization. These findings are consistent with the internality axiom and do not support the uncertainty effect.

Keywords: auction, lotteries, real products, uncertainty effect, WTA, WTP

JEL Classification: C91, D44, D81

Suggested Citation

Benzion, Uri and Shahrabani, Shosh and Shavit, Tal, Retesting the Uncertainty Effect Using Lotteries with Real Products and Money (May 2013). Bulletin of Economic Research, Vol. 65, pp. s175-s186, 2013. Available at SSRN: https://ssrn.com/abstract=2262154 or http://dx.doi.org/10.1111/j.1467-8586.2011.00429.x

Uri Benzion (Contact Author)

Western Galilee College - Department of Economics ( email )

POB 2125
Akko, 24121
Israel

Shosh Shahrabani

Emek Yezreel College - Department of Economics ( email )

Yezreel 19300
Israel

Tal Shavit

College of Management (Israel) ( email )

7 Rabin Blvd.
Rishon Lezion
Rishon Lezion, 75190
Israel

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
228
PlumX Metrics