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At what age does the anchoring heuristic emerge? Evidence from Jeopardy!

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  • Jetter, Michael
  • Walker, Jay K.

Abstract

Accessing data from the US game show Jeopardy!, we investigate the anchoring phenomenon among kids (aged 10–12 years; 182 observations), teenagers (aged 13–17 years; 606 observations), and undergraduate college students (559 observations). We focus on Daily Double clues where a contestant can wager on their correct response immediately after an initial clue value has been made salient (e.g., “I choose [the clue category] World Capitals for $600!”). Crucially, the show’s rules and identifiable strategies provide no rational reason why the initial clue value should serve as an anchor for the subsequent wager. Our results produce no statistically discernible evidence consistent with anchoring in kids and teenagers once we account for contestants’ scores as an important determinant of wagers. However, college students appear to anchor their wager strongly on the initial clue value. These results are consistent with the hypothesis that anchoring emerges in adults, but is not present among teenagers or children. Nevertheless, we advise caution in interpreting our results pertaining to kids since sample sizes are smaller and therefore estimates become less precise in statistical terms.

Suggested Citation

  • Jetter, Michael & Walker, Jay K., 2020. "At what age does the anchoring heuristic emerge? Evidence from Jeopardy!," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 757-766.
    • Handle: RePEc:eee:jeborg:v:179:y:2020:i:c:p:757-766
    DOI: 10.1016/j.jebo.2019.08.017
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    References listed on IDEAS

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    1. Jetter, Michael & Walker, Jay K., 2017. "Anchoring in financial decision-making: Evidence from Jeopardy!," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 164-176.
    2. Meub, Lukas & Proeger, Till E., 2015. "Anchoring in social context," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 29-39.
    3. 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.
    4. Dan Ariely & Uri Gneezy & George Loewenstein & Nina Mazar, 2009. "Large Stakes and Big Mistakes," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 451-469.
    5. Guido Baltussen & Martijn J. van den Assem & Dennie van Dolder, 2016. "Risky Choice in the Limelight," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 318-332, May.
    6. McAlvanah, Patrick & Moul, Charles C., 2013. "The house doesn’t always win: Evidence of anchoring among Australian bookies," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 87-99.
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    Cited by:

    1. Jetter, Michael & Stockley, Kieran, 2021. "Gender Match and the Gender Gap in Venture Capital Financing: Evidence from Shark Tank," IZA Discussion Papers 14069, Institute of Labor Economics (IZA).
    2. Michael Jetter & Kieran Stockley, 2023. "Gender match and negotiation: evidence from angel investment on Shark Tank," Empirical Economics, Springer, vol. 64(4), pages 1947-1977, April.

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    More about this item

    Keywords

    Anchoring; Heuristics; High stakes; Time pressure;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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