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On the effect of anchoring on valuations when the anchor is transparently uninformative
- Source :
- Journal of the Economic Science Association, 6(1), 77-94
- Publication Year :
- 2020
-
Abstract
- 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.
- Subjects :
- replication
experiment
Anchoring
market
05 social sciences
Replication
Variance (accounting)
Market
Large sample
Microeconomics
anchoring
Experiment
Meta-analysis
C91
0502 economics and business
ddc:330
D91
D01
Double auction
050211 marketing
Business
050207 economics
health care economics and organizations
Subjects
Details
- Language :
- English
- ISSN :
- 21996776
- Volume :
- 6
- Issue :
- 1
- Database :
- OpenAIRE
- Journal :
- Journal of the Economic Science Association
- Accession number :
- edsair.doi.dedup.....7ee9cf62e1626be0845f0b4b83a51a72