Personality and Procedural Invariance: Effects on Bidding Behavior Across Induced Value Experimental Auction Mechanisms

A growing literature exists on the design, implementation and evaluation of experimental auctions with a variety of non-market valuation applications. With behavioral economic models becoming more mainstreamed in the discipline, a natural question arises about how personality traits might affect bidding behavior in experimental auctions. To address this question, a series of induced-value experiments were carried out in the fall of 2012. Personality traits were measured in pre- and post-surveys aligning with the Midlife Development Inventory Analysis. Regression analysis determined the effects of personality traits on over- and under-bidding behaviors across four frequently used auction mechanism: the Becker-Degroot-Marschak, 2nd Price, Random Nth Price, and English auctions. Results indicate that only the BDM and Random Nth price auctions are significantly affected by personality profile. Specifically, openness, extraversion, and neuroticism are associated with overbidding behavior and agreeableness is associated with underbidding behaviors.