in strategic settings. This article studies the role of anchoring bias in private-value auctions. We test experimentally …

Anchoring is a robust behavioral phenomenon modeled predominantly as a bias in individual judgment. We propose a game …

determining relative performance, optimal bias is i) strictly positive; ii) locally insensitive to changes in the heterogeneity …-to-noise ratio. A close relationship with expected optimal bias under cardinal information helps explain this surprising result …. Properties i) and ii) imply that the simple rule of setting bias as if in the worst-case scenario achieves most of the potential …