Field Experiments on the Anchoring of Economic Valuations

17 Pages Posted: 14 May 2015

See all articles by Jonathan E. Alevy

Jonathan E. Alevy

University of Alaska Anchorage

Craig E. Landry

UGA Ag & Applied Economics

John A. List

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: July 2015

Abstract

A pillar of behavioral research is that preferences are constructed during the process of choice. A prominent finding is that uninformative numerical “anchors” influence judgment and valuation. It remains unclear whether such processes influence market equilibria. We conduct two experiments that extend the study of anchoring to field settings. The first experiment produces evidence that some consumers’ valuations can be anchored in novel situations; there is no evidence that experienced agents are influenced by anchors. The second experiment finds that anchors have only transient effects on market outcomes that converge to equilibrium predictions after a few market periods.

JEL Classification: C93, D11

Suggested Citation

Alevy, Jonathan E. and Landry, Craig and List, John A., Field Experiments on the Anchoring of Economic Valuations (July 2015). Economic Inquiry, Vol. 53, Issue 3, pp. 1522-1538, 2015, Available at SSRN: https://ssrn.com/abstract=2605236 or http://dx.doi.org/10.1111/ecin.12201

Jonathan E. Alevy (Contact Author)

University of Alaska Anchorage ( email )

Anchorage, AK 99508
United States

Craig Landry

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

John A. List

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
290
PlumX Metrics