Do practice rounds affect experimental auction results?

Researchers use practice rounds to familiarize participants with experimental auction mechanisms. We find a positive correlation between practice bids and bids submitted in later rounds. We consider three explanations for this correlation: a behavioral anchoring effect, a tendency for some auction participants to be more free-spending, and misconception of the experimental auction’s demand revealing qualities.

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Year of publication:	2014
Authors:	Corrigan, Jay R. ; Rousu, Matthew C. ; Depositario, Dinah Pura T.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 123.2014, 1, p. 42-44
Publisher:	Elsevier
Subject:	Experimental auctions \| Practice rounds \| Anchoring \| Misconceptions \| Spendthrift effect

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Type of publication:	Article
Classification:	C9 - Design of Experiments ; Q1 - Agriculture
Source:	RePEc - Research Papers in Economics

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