Field Experiments on Anchoring of Economic Valuations
AbstractA pillar of behavioral research is the view that preferences are constructed during the value elicitation process, but it is unclear whether, and to what extent, such biases influence real market equilibria. This paper examines the “anchoring” phenomenon in the field. The first experiment produces evidence that inexperienced consumers can be anchored in the value elicitation process, yet there is little evidence that experienced agents are influenced by anchors. The second experiment finds that anchors have only transient effects on prices and quantities traded: aggregate market outcomes converge to the intersection of supply and demand after a few market periods.
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Bibliographic InfoPaper provided by University of Alaska Anchorage, Department of Economics in its series Working Papers with number 2011-02.
Date of creation: 2011
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Web page: http://www.cbpp.uaa.alaska.edu/CBPPHome/DepartmentsandMajors/Economics.aspx
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field experiment; anchoring; valuation; experience;
Find related papers by JEL classification:
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-22 (All new papers)
- NEP-CBE-2011-08-22 (Cognitive & Behavioural Economics)
- NEP-EVO-2011-08-22 (Evolutionary Economics)
- NEP-EXP-2011-08-22 (Experimental Economics)
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