Selection Bias, Demographic Effects, and Ability Effects in Common Value Auction Experiments

Marco Casari, John Ham and John Kagel

American Economic Review, 2007, vol. 97, issue 4, 1278-1304

Abstract: Inexperienced women, along with economics and business majors, are much more susceptible to the winner's curse, as are subjects with lower SAT/ACT scores. There are strong selection effects in bid function estimates for inexperienced and experienced subjects due to bankruptcies and bidders who have lower earnings returning less frequently as experienced subjects. These selection effects are not identified using standard econometric techniques but are identified through experimental treatment effects. Ignoring these selection effects leads to misleading estimates of learning. (JEL D44, D83, J16)

Date: 2007
Note: DOI: 10.1257/aer.97.4.1278
References: Add references at CitEc
Citations: View citations in EconPapers (126)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.97.4.1278 (application/pdf)
http://www.aeaweb.org/aer/data/sept07/20051324_data.zip (application/zip)
http://www.aeaweb.org/aer/data/sept07/20051324_app.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Selection bias, demographic effects, and ability effects in common value auction experiments (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:97:y:2007:i:4:p:1278-1304

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().