A Test for Anchoring and Yea-Saying in Experimental Consumption Data

38 Pages Posted: 17 May 2004 Last revised: 1 Feb 2021

See all articles by Arthur van Soest

Arthur van Soest

Tilburg University; Netspar; RAND Corporation; Institute for the Study of Labor (IZA)

Michael D. Hurd

RAND Corporation; State University of New York at Stony Brook - College of Arts and Science - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2004

Abstract

In the experimental module of the AHEAD 1995 data, the sample is randomly split into respondents who get an open-ended question on the amount of total family consumption - with follow-up unfolding brackets (of the form: is consumption $X or more?) for those who answer don't know' or refuse' - and respondents who are immediately directed to unfolding brackets. In both cases, the entry point of the unfolding bracket sequence is randomized. These data are used to develop a nonparametric test for whether people make mistakes in answering the first bracket question, allowing for any type of selection into answering the open-ended question or not. Two well-known types of mistakes are considered: anchoring and yea-saying (or acquiescence). While the literature provides ample evidence that the entry point in the first bracket question serves as an anchor for follow-up bracket questions, it is less clear whether the answers to the first bracket question are already affected by anchoring. We reject the joint hypothesis of no anchoring and no yea-saying at the entry point. Once yea-saying is taken into account

Suggested Citation

van Soest, Arthur H. O. and Hurd, Michael D., A Test for Anchoring and Yea-Saying in Experimental Consumption Data (May 2004). NBER Working Paper No. w10462, Available at SSRN: https://ssrn.com/abstract=537807

Arthur H. O. van Soest

Tilburg University ( email )

P.O. Box 90153
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Netspar

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RAND Corporation ( email )

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Institute for the Study of Labor (IZA)

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Michael D. Hurd (Contact Author)

RAND Corporation ( email )

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State University of New York at Stony Brook - College of Arts and Science - Department of Economics ( email )

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United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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