Do Practice Rounds Affect Experimental Auction Results?
Posted: 19 Jun 2014
Date Written: January 27, 2014
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.
Suggested Citation: Suggested Citation
Corrigan, Jay R. and Rousu, Matthew C and Depositario, Dinah Pura T., Do Practice Rounds Affect Experimental Auction Results? (January 27, 2014). Economics Letters, Vol. 123, No. 1, 2014, Available at SSRN: https://ssrn.com/abstract=2455855
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.