Anchoring Effects in an Experimental Auction

Gese Sophie Holst, Daniel Hermann and Oliver Musshoff

No 187386, 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 from German Association of Agricultural Economists (GEWISOLA)

Abstract: Auctioning goods is a widespread practice, particularly in the agricultural sector. The out-come of auctions can be affected by various factors. One of these factors can be anchoring effects, which describe the influence of present available information on numerical values in human decisions. However, the influence of anchoring effects in auctions carried out offline is largely unknown. For this reason, we analyze anchoring effects of exogenously provided values using an experimental auction with farmers. In total, 48 groups of five farmers each participate in a series of four auctions for envelopes containing a €10 banknote with a 50% probability of occurrence. Our results indicate that anchoring based on exogenously presented values can result either in negative adjustment or no adjustment depending on the auction characteristic. Furthermore, the results show that previous bids affect following bids, which might also be an anchoring effect.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 13
Date: 2014-09
New Economics Papers: this item is included in nep-agr and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/187386/files/a ... mental%20auction.pdf (application/pdf)

Related works:
Journal Article: Anchoring Effects in an Experimental Auction (2015)
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:ags:gewi14:187386

DOI: 10.22004/ag.econ.187386

Access Statistics for this paper

More papers in 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 from German Association of Agricultural Economists (GEWISOLA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().