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It's education, not gender: A research note on the determinants of an anchoring bias in experimental WTA elicitations

Author

Listed:
  • Miriam Beblo

    (Universität Hamburg)

  • Denis Beninger

    (Université de Strasbourg)

  • Eva Markowsky

    (Universität Hamburg)

Abstract

We study anchoring in an experiment with non-standard participants and find evidence that the influence of the anchor value differs by individual characteristics. Participants with lower levels of education and less labor market experience show a significantly larger anchoring bias in their wage demands for a work task. Gender differences in anchoring are due to gender-specific education and employment patterns -contributing a further channel to a persistent gender pay gap.

Suggested Citation

  • Miriam Beblo & Denis Beninger & Eva Markowsky, 2017. "It's education, not gender: A research note on the determinants of an anchoring bias in experimental WTA elicitations," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(2), pages 51-55, September.
    • Handle: RePEc:beh:jbepv1:v:1:y:2017:i:2:p:51-55
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    References listed on IDEAS

    as
    1. Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2009. "Cognitive abilities and behavioral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 147-152, October.
    2. Andrey Kudryavtsev & Gil Cohen, 2011. "Behavioral Biases in Economic and Financial Knowledge: Are They the Same for Men and Women?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 1(1), pages 1-2.
    3. Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 73-106.
    4. Furnham, Adrian & Boo, Hua Chu, 2011. "A literature review of the anchoring effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 35-42, February.
    5. Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2009. "Cognitive Abilities and Behavioral Biases," Working Papers 0465, University of Heidelberg, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    More about this item

    Keywords

    anchoring bias; gender; willingness-to-accept; second-price auction;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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