Does a promise script work to reduce the hypothetical bias? Evidence from an induced value experiment
This paper explores whether a truth-telling promise can work to reduce the hypothetical bias in preference elicitation. Using an induced value experiment in China with a random nth-price auction, the author finds: 1) Hypothetical bias exists in a random nth-price auction with induced values and maki...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
De Gruyter
2020-12-01
|
| Series: | Economics: Journal Articles |
| Subjects: | |
| Online Access: | https://doi.org/10.5018/economics-ejournal.ja.2020-11 |
| Summary: | This paper explores whether a truth-telling promise can work to reduce the hypothetical bias in preference elicitation. Using an induced value experiment in China with a random nth-price auction, the author finds: 1) Hypothetical bias exists in a random nth-price auction with induced values and making a truth-telling promise can reduce the hypothetical bias. 2) All treatments are demand-revealing except for the hypothetical baseline. |
|---|---|
| ISSN: | 1864-6042 |