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The Visible Hand: Finger Ratio (2D:4D) and Competitive Bidding

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  • Matthew Pearson
  • Burkhard Schipper

    (Department of Economics, University of California Davis)

Abstract

In an experiment using two-bidder first-price sealed bid auctions with symmetric independent private values and 400 subjects, we scan also the right hand of each subject. We study how the ratio of the length of the index and ring fingers (2D:4D) of the right hand, a measure of prenatal hormone exposure, is correlated with bidding behavior and total profits. 2D:4D has been reported to predict competitiveness in sports competition (Manning and Taylor, 2001, and Hoenekopp, Manning, and Mueller, 2006), risk aversion in lottery tasks (Dreber and Hoffman, 2007, Garbarino et al., 2010), and the average profitability of high-frequency traders in financial markets (Coates, Gurnell, and Rustichini, 2009). We do not find any significant correlation between 2D:4D on either bidding or profits. However, there might be racial differences in the correlation between 2D:4D and bidding and profits.

Suggested Citation

  • Matthew Pearson & Burkhard Schipper, 2011. "The Visible Hand: Finger Ratio (2D:4D) and Competitive Bidding," Working Papers 43, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:43
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    Cited by:

    1. Pearson, Matthew & Schipper, Burkhard C., 2013. "Menstrual cycle and competitive bidding," Games and Economic Behavior, Elsevier, vol. 78(C), pages 1-20.
    2. Cueva, Carlos & Iturbe-Ormaetxe, Iñigo & Mata-Pérez, Esther & Ponti, Giovanni & Sartarelli, Marcello & Yu, Haihan & Zhukova, Vita, 2016. "Cognitive (ir)reflection: New experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 64(C), pages 81-93.
    3. Burkhard C. Schipper, 2015. "Sex Hormones and Competitive Bidding," Management Science, INFORMS, vol. 61(2), pages 249-266, February.
    4. Judit Alonso & Roberto Di Paolo & Giovanni Ponti & Marcello Sartarelli, 2017. "Some (Mis)facts about 2D:4D, Preferences and Personality," Working Papers. Serie AD 2017-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Jonathan Chapman & Mark Dean & Pietro Ortoleva & Erik Snowberg & Colin Camerer, 2018. "Econographics," NBER Working Papers 24931, National Bureau of Economic Research, Inc.
    6. Pablo Brañas‐Garza & Matteo M. Galizzi & Jeroen Nieboer, 2018. "Experimental And Self‐Reported Measures Of Risk Taking And Digit Ratio (2d:4d): Evidence From A Large, Systematic Study," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1131-1157, August.
    7. Dalton, P.S. & Ghosal, S., 2014. "Self-Confidence, Overconfidence and Prenatal Testorone Exposure : Evidence from the Lab," Other publications TiSEM 4e1f8c21-94d7-4351-bf26-0, Tilburg University, School of Economics and Management.
    8. Hubert János Kiss & Alfonso Rosa-Garcia & Vita Zhukova, 2023. "Group contest in a coopetitive setup: experimental evidence," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(3), pages 463-490, July.
    9. Neyse, Levent & Brañas-Garza, Pablo, 2014. "Digit ratio measurement guide," Kiel Working Papers 1914, Kiel Institute for the World Economy (IfW Kiel).
    10. Sergio Da Silva & Bruno Moreira & Newton Da Costa Jr, 2015. "Handedness and digit ratio predict overconfidence in cognitive and motor skill tasks in a sample of preschoolers," Economics Bulletin, AccessEcon, vol. 35(2), pages 1087-1097.
    11. Schipper, Burkhard C., 2023. "Sex hormones and choice under risk," Journal of Economic Psychology, Elsevier, vol. 96(C).
    12. Neyse, Levent & Vieider, Ferdinand M. & Ring, Patrick & Probst, Catharina & Kaernbach, Christian & Eimeren, Thilo van & Schmidt, Ulrich, 2020. "Risk attitudes and digit ratio (2D:4D): Evidence from prospect theory," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 60, pages 29-51.
    13. Buser, Thomas, 2012. "Digit ratios, the menstrual cycle and social preferences," Games and Economic Behavior, Elsevier, vol. 76(2), pages 457-470.
    14. Brañas-Garza, Pablo & Chowdhury, Subhasish M. & Espín, Antonio M. & Nieboer, Jeroen, 2023. "‘Born this Way’? Prenatal exposure to testosterone may determine behavior in competition and conflict," Journal of Economic Psychology, Elsevier, vol. 96(C).
    15. Fossen, Frank M. & Neyse, Levent & Johannesson, Magnus & Dreber Almenberg, Anna, 2020. "2D:4D and Self-Employment Using SOEP Data: A Replication Study," IZA Discussion Papers 13180, Institute of Labor Economics (IZA).
    16. Candelo, Natalia & Eckel, Catherine, 2018. "The 2D:4D ratio does not always correlate with economic behavior: A field experiment with African-Americans," Economics & Human Biology, Elsevier, vol. 30(C), pages 172-181.
    17. Fossen, Frank M. & Neyse, Levent & Johannesson, Magnus & Dreber, Anna, 2022. "2D:4D and Self-Employment: A Preregistered Replication Study in a Large General Population Sample," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(1), pages 21-43.
    18. Pablo Brañas-Garza & Aldo Rustichini, 2011. "Organizing Effects of Testosterone and Economic Behavior: Not Just Risk Taking," PLOS ONE, Public Library of Science, vol. 6(12), pages 1-8, December.
    19. Hubert J. Kiss & Alfonso Rosa-Garcia & Vita Zhukova, 2019. "Coopetition in group contest," CERS-IE WORKING PAPERS 1911, Institute of Economics, Centre for Economic and Regional Studies.
    20. Santiago Sanchez-Pages & Claudia Rodriguez-Ruiz & Enrique Turiegano, 2014. "Facial Masculinity: How the Choice of Measurement Method Enables to Detect Its Influence on Behaviour," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-10, November.
    21. Werner Bönte & Vivien D. Procher & Diemo Urbig, 2016. "Biology and Selection into Entrepreneurship—The Relevance of Prenatal Testosterone Exposure," Entrepreneurship Theory and Practice, , vol. 40(5), pages 1121-1148, September.
    22. Thomas Buser, 2011. "Hormones and Social Preferences," Tinbergen Institute Discussion Papers 11-046/3, Tinbergen Institute.
    23. Patricio S. Dalton & Sayantan Ghosal, 2014. "Self-Confidence, Overconfidence and Prenatal Testosterone Exposure: Evidence from the Lab," Working Papers 2014_02, Business School - Economics, University of Glasgow.
    24. Galizzi, Matteo M. & Nieboer, Jeroen, 2015. "Digit ratio (2D:4D) and altruism: evidence from a large, multi-ethnic sample," LSE Research Online Documents on Economics 60982, London School of Economics and Political Science, LSE Library.
    25. Neyse, Levent & Friedl, Andreas & Schmidt, Ulrich, 2014. "Payment Scheme Changes and Effort Provision: The Effect of Digit Ratio," MPRA Paper 59549, University Library of Munich, Germany.

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    More about this item

    Keywords

    Hormones; Digit ratio; 2D:4D; Risk behavior; Competition; Competitive behavior; Auctions; Bidding; Endocrinological economics;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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