Anchoring bias in markets

Ioannidis, Konstantinos; Sloof, Randolph; Offerman, Theo

doi:10.1257/rct.3402-1.0

Search citation statements

Order By: Relevance

Paper Sections

Select...

Experimental Design and Implementation1

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2019

2020

Publication Types

Select...

Article2

Relationship

Self Cite2

Independent0

Authors

Journals

Cited by 2 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We pre-registered our study on the American Economic Association's registry for randomized controlled trials (Ioannidis et al 2018). 1 The experiment was run at the CREED communication Lab of the University of Amsterdam.…”

Section: Experimental Design and Implementationmentioning

confidence: 99%

On the effect of anchoring on valuations when the anchor is transparently uninformative

2020

Self Cite

View full text Add to dashboard Cite

We test whether anchoring affects people’s elicited valuations for a bottle of wine in individual decision-making and in markets. We anchor subjects by asking them if they are willing to sell a bottle of wine for a transparently uninformative random price. We elicit subjects’ Willingness-To-Accept for the bottle before and after the market. Subjects participate in a double auction market either in a small or a large trading group. The variance in subjects’ Willingness-To-Accept shrinks within trading groups. Our evidence supports the idea that markets have the potential to diminish anchoring effects. However, the market is not needed: our anchoring manipulation failed in a large sample. In a concise meta-analysis, we identify the circumstances under which anchoring effects of preferences can be expected.

show abstract

Section: Experimental Design and Implementationmentioning

confidence: 99%