Anchoring and transaction utility: evidence from on-line auctions
AbstractThis article presents empirical evidence that people use anchoring to form their valuation of an object. Using data from the on-line auction Bidz.com, we found that people bid more for an item with a higher posted 'buy now' price than for an identical item with the lower posted 'buy now' price.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 11 (2004)
Issue (Month): 5 ()
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- Nicholas Shunda, 2007.
"Auctions with a Buy Price: The Case of Reference-Dependent Preferences,"
2007-42, University of Connecticut, Department of Economics.
- Shunda, Nicholas, 2009. "Auctions with a buy price: The case of reference-dependent preferences," Games and Economic Behavior, Elsevier, vol. 67(2), pages 645-664, November.
- Jong-Rong Chen & Kong-Pin Chen & Chien-Fu Chou & Ching-I Huang, 2013.
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- Tim Grebe & Radosveta Ivanova-Stenzel & Sabine Kröger, 2009.
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Cahiers de recherche
- Grebe, Tim & Ivanova-Stenzel, Radosveta & Kröger, Sabine, 2010. "Buy-It-Now prices in eBay Auctions - The Field in the Lab," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 294, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Ofer H. Azar, 2013. "Optimal Strategy Of Multi-Product Retailers With Relative Thinking And Reference Prices," Working Papers 1313, Ben-Gurion University of the Negev, Department of Economics.
- Meub, Lukas & Proeger, Till, 2014. "An experimental study on social anchoring," Center for European, Governance and Economic Development Research Discussion Papers 196, University of Goettingen, Department of Economics.
- Ulrike Malmendier & Young Han Lee, 2011.
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- Azar, Ofer H., 2013. "Competitive strategy when consumers are affected by reference prices," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 327-340.
- Peeters, Ronald & Strobel, Martin & Vermeulen, Dries & Walzl, Markus, 2007. "The impact of the irrelevant – Temporary buy-options and bidding behavior in online auctions," Research Memorandum 027, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- 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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