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Field Experiments on Anchoring of Economic Valuations

Author

Listed:
  • Jonathan E. Alevy

    (Department of Economics, University of Alaska Anchorage)

  • Craig E. Landry

    (Department of Economics, East Carolina University)

  • John A. List

    (Department of Economics, University of Chicago)

Abstract

A 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.

Suggested Citation

  • Jonathan E. Alevy & Craig E. Landry & John A. List, 2011. "Field Experiments on Anchoring of Economic Valuations," Working Papers 2011-02, University of Alaska Anchorage, Department of Economics.
    • Handle: RePEc:ala:wpaper:2011-02
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    File URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA201102.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    field experiment; anchoring; valuation; experience;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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