Bidding behavior and decision costs in field experiments

John List and David Reiley ()

Framed Field Experiments from The Field Experiments Website

Abstract: Whether rationality of economic behavior increases with expected payoffs and decreases with the cognitive cost it takes to formulate an optimal strategy remains an open question. We explore these issues with field data, using individual bids from sealed-bid auctions in which we sold nearly $10,000 worth of sportscards. Our results indicate that stakes do indeed matter, as high-priced ($70) cards produced more of the theoretically predicted strategic behavior than did lower-priced ($3) cards. We find additional evidence consistent with the importance of cognitive costs, as subjects more experienced with sportscard auctions exhibited a greater tendency to behave strategically than did less experienced bidders.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://s3.amazonaws.com/fieldexperiments-papers2/papers/00181.pdf

Related works:
Journal Article: Bidding Behavior and Decision Costs in Field Experiments (2002)
Working Paper: Bidding Behavior and Decision Costs in Field Experiments (2000)
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:feb:framed:00181

Access Statistics for this paper

More papers in Framed Field Experiments from The Field Experiments Website
Bibliographic data for series maintained by Francesca Pagnotta ().