We present the results of an economic laboratory experiment that tests behavioral biases that have been associated with the BDM mechanism. By manipulating the highest random competing bid, the maximum possible loss, the distribution of prices and the elicitation format, we attempt to disentangle the effects of reference-dependence, expectations as well as price and loss anchoring on subjects' bids. The results show that bids are affected by expectations and anchoring on the highest price but not by anchoring on the maximum possible loss. In addition, results are supportive of the no-loss-in-buying hypothesis of Novemsky and Kahneman (2005)
In the experimental auctions literature, it is common practice to train subjects, who are often unfa...
There is abundant literature in experimental research on decision making under risk, which compares,...
Accurately estimating consumer demand for new products is an arduous task made even more difficult b...
We present the results of an economic laboratory experiment that tests behavioral biases that have b...
In this paper, we provide a novel experimental auction design that exploits an exogenous variation i...
We present results from an experiment with a within-subject design aimed at testing a unique predic...
Pricing research suggests incentive-compatible evaluations when consumers’ situation-specific WTP is...
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We...
A key prediction of expectations-based reference-dependent preferences and loss aversion in second-p...
This experiment finds that the Becker-DeGroot-Marschak (BDM) (1964) valuation mechanism under-predic...
Accurately estimating consumer demand for new products is an arduous task made even more difficult b...
We reexamine the effects of the anchoring manipulation of Ariely, Loewenstein, and Prelec (2003) on ...
This paper investigates implications of some of the well established behavioral biases to the behavi...
We design an experiment to test the hypothesis that, in violation of Bayes’ rule, some people respon...
Pricing research suggests incentive compatible evaluations of separate products in so-called monadic...
In the experimental auctions literature, it is common practice to train subjects, who are often unfa...
There is abundant literature in experimental research on decision making under risk, which compares,...
Accurately estimating consumer demand for new products is an arduous task made even more difficult b...
We present the results of an economic laboratory experiment that tests behavioral biases that have b...
In this paper, we provide a novel experimental auction design that exploits an exogenous variation i...
We present results from an experiment with a within-subject design aimed at testing a unique predic...
Pricing research suggests incentive-compatible evaluations when consumers’ situation-specific WTP is...
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We...
A key prediction of expectations-based reference-dependent preferences and loss aversion in second-p...
This experiment finds that the Becker-DeGroot-Marschak (BDM) (1964) valuation mechanism under-predic...
Accurately estimating consumer demand for new products is an arduous task made even more difficult b...
We reexamine the effects of the anchoring manipulation of Ariely, Loewenstein, and Prelec (2003) on ...
This paper investigates implications of some of the well established behavioral biases to the behavi...
We design an experiment to test the hypothesis that, in violation of Bayes’ rule, some people respon...
Pricing research suggests incentive compatible evaluations of separate products in so-called monadic...
In the experimental auctions literature, it is common practice to train subjects, who are often unfa...
There is abundant literature in experimental research on decision making under risk, which compares,...
Accurately estimating consumer demand for new products is an arduous task made even more difficult b...