Abstract
This article contributes to the research agenda of accommodating psychological insights in conventional lab experiments. We specifically test whether inducing subjects into different mood states has a significant effect on subjects’ rationality (in the form of preference reversals) and on bidding behaviour in home-grown value auctions. We find that mood states can significantly affect the rate of preference reversals and bidding behaviour in experimental auction valuation. Specifically we find that subjects under a positive mood state exhibit more rational behaviour (i.e., less preference reversals) and provide lower bid values than others.
Original language | English |
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Pages (from-to) | 141-163 |
Number of pages | 23 |
Journal | Studies in Microeconomics |
Volume | 2 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2014 Dec 1 |
Keywords
- Mood
- Vickrey auction
- affect
- preference reversals
- rationality
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)