Bidding Behavior and Decision Costs in Field Experiments

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dc.contributor.authorList, John A.
dc.contributor.authorLucking-Reiley, David
dc.date.accessioned2020-09-13T18:10:26Z
dc.date.available2020-09-13T18:10:26Z
dc.date.issued2000
dc.description.abstractWhether rationality of economic behavior increases with expected payoffs and decreases with the cognitive cost it takes to formulate an optimal strategy remains an open question. We explore these issues with field data, using individual bids from sealed-bid auctions in which we sold nearly $10,000 worth of sportscards. Our results indicate that stakes do indeed matter, as high-priced ($70) cards produced more of the theoretically predicted strategic behavior than did lower-priced ($3) cards. We find additional evidence consistent with the importance of cognitive costs, as subjects more experienced with sportscard auctions exhibited a greater tendency to behave strategically than did less experienced bidders.
dc.description.departmentEconomics
dc.identifier.urihttp://hdl.handle.net/1803/15625
dc.language.isoen_US
dc.publisherVanderbilt Universityen
dc.subject.other
dc.titleBidding Behavior and Decision Costs in Field Experiments
dc.typeWorking Paperen
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