Do Practice Rounds Affect Experimental Auction Results?
Posted: 19 Jun 2014
Date Written: January 27, 2014
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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