Naturally Occurring Markets and Exogenous Laboratory Experiments

A Case Study of The Winner's Curse

Datos Bibliográficos

ID9718665
AutoresGlenn W Harrison (0000-0003-1837-8020, University of Central Florida), John A List (0000-0002-1740-3848, NBER and University of Chicago)
Año2008
Volumen118
Número528
Páginas822-843
Fecha de publicación2008-04-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2008.02144.x
OpenAlexW1997622479
IdiomaEN
Citas recibidas6
Referencias citadas18

We examine the relevance of experimental findings from laboratory settings that abstract from the field context of the task that theory purports to explain. Using common value auction theory as our guide, we identify naturally occurring settings in which one can test the theory. Experienced agents bidding in familiar roles do not fall prey to the winner's curse. Yet, experienced agents fall prey to the winner's curse when bidding in an unfamiliar role. We conclude that the theory predicts field behaviour well when one is able to identify naturally occurring field counterparts to the key theoretical conditions. Copyright © 2008 The Author(s)

Curse · Economics · Library science · Sociology · Auction Theory and Applications · Classics · Computer Science · Consumer Market Behavior and Pricing · Experimental Behavioral Economics Studies · History