Inducing risk-neutral preferences: Further analysis of the data |
| |
Authors: | James C Cox Ronald L Oaxaca |
| |
Institution: | 1. Department of Economics, University of Arizona, 85721, Tucson, AZ
|
| |
Abstract: | The lottery payoff procedure does not successfully induce risk-neutral bidding behavior in first-price, sealedbid auctions. This conclusion follows from both ordinary-least-squares estimation with natural data and leastabsolute-deviation estimation with transformed data from numerous experimental designs. Lottery payoffs do not succeed in inducing behavior predicted from standard expected utility theory assumptions or from assumed utility from winning and/or income thresholds. In contrast, first-price auction experiments with monetary payoffs yield results that are consistent with general models of bidding in the independent private values information environment. |
| |
Keywords: | lottery payoffs auctions experimental economics |
本文献已被 SpringerLink 等数据库收录! |