Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/220023
Authors: 
Ioannidis, Konstantinos
Offerman, Theo
Sloof, Randolph
Year of Publication: 
2020
Series/Report no.: 
Tinbergen Institute Discussion Paper TI 2019-074/I
Abstract: 
We test whether anchoring affects people's elicited valuations for a bottle of wine in individual decision making and in markets. We anchor subjects by asking them if they are willing to sell a bottle of wine for a transparently uninformative random price. We elicit subjects' Willingness-To-Accept for the bottle before and after the market. Subjects participate in a double auction market either in a small or a large trading group. The variance in subjects' Willingness-To-Accept shrinks within trading groups. Our evidence supports the idea that markets have the potential to diminish anchoring effects. However, the market is not needed: our anchoring manipulation failed in a large sample.
Subjects: 
anchoring
replication
market
experiment
JEL: 
D01
D91
C91
Document Type: 
Working Paper

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