Konferenzbeitrag
Hypothetical thinking and the winner's curse: An experimental investigation
There is evidence that bidders fall prey to the winner's curse because they fail to extract information from hypothetical events - like winning an auction. This paper investigates experimentally whether bidders in a common value auction perform better when the requirements for this cognitive issue – also denoted by contingent reasoning - are relaxed, leaving all other parameters unchanged. The overall pattern of the data suggests that the problem of irrational over- and underbidding can be weakened by giving the subjects ex ante feedback about their bid, but unlike related studies I also find negative effects of additional information.
- Sprache
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Englisch
- Erschienen in
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Poster Session Experiments ; No. P02-V3
- Klassifikation
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Wirtschaft
Auctions
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Design of Experiments: Laboratory, Individual
- Thema
-
Hypothetical thinking
cursed equilibrium
winner's curse
- Ereignis
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Geistige Schöpfung
- (wer)
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Moser, Johannes
- Ereignis
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Veröffentlichung
- (wer)
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ZBW - Leibniz-Informationszentrum Wirtschaft
- (wo)
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Kiel, Hamburg
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Konferenzbeitrag
Beteiligte
- Moser, Johannes
- ZBW - Leibniz-Informationszentrum Wirtschaft
Entstanden
- 2018