The effects of induced mood on bidding in random nth-price auctions
AbstractIn this paper we study whether mood affects: 1) Willingness to pay (WTP); and 2) The effectiveness of the demand revealing mechanism. We study decisions using a random nth price auction with induced values and homegrown values. Our data show no clear support for negative mood effects on WTP and, under some conditions, they show weak support for positive mood effects on WTP. However, mood does affect the effectiveness of the value elicitation mechanism in revealing value. Under a good mood, subjects submit bids that are significantly higher than their induced values.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 75 (2010)
Issue (Month): 2 (August)
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Auctions Demand revelation Willingness to pay Experiments Affect Mood;
Other versions of this item:
- C. Monica Capra & Shireen Meer & Kelli Lanier, 2006. "The Effects of Induced Mood on Bidding in Random N-th Price Auctions," Emory Economics 0607, Department of Economics, Emory University (Atlanta).
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