Decision-making in Home-grown Value Auctions under Induced Mood States

Andreas C. Drichoutis; Rodolfo M. Nayga; Stathis Klonaris

doi:10.1177/2321022214545270

Decision-making in Home-grown Value Auctions under Induced Mood States

Andreas C. Drichoutis, Rodolfo M. Nayga, Stathis Klonaris

Department of Food and Resource Economics

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

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
Pages (from-to)	141-163
Number of pages	23
Journal	Studies in Microeconomics
Volume	2
Issue number	2
DOIs	https://doi.org/10.1177/2321022214545270
Publication status	Published - 2014 Dec 1

Keywords

Mood
Vickrey auction
affect
preference reversals
rationality

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

Access to Document

10.1177/2321022214545270

Cite this

@article{f74d502100a842408f77fe1f90994b55,

title = "Decision-making in Home-grown Value Auctions under Induced Mood States",

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{\textquoteright} 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.",

keywords = "Mood, Vickrey auction, affect, preference reversals, rationality",

author = "Drichoutis, {Andreas C.} and Nayga, {Rodolfo M.} and Stathis Klonaris",

note = "Funding Information: We would like to thank Spyros Stachtiaris and Achilleas Vassilopoulos for excellent research assistance and Jayson Lusk for helpful comments. Drichoutis and Klonaris acknowledge financial support from the Secretariat of Research Committee of the Agricultural University of Athens.",

year = "2014",

month = dec,

day = "1",

doi = "10.1177/2321022214545270",

language = "English",

volume = "2",

pages = "141--163",

journal = "Studies in Microeconomics",

issn = "2321-0222",

publisher = "SAGE Publications Ltd",

number = "2",

}

TY - JOUR

T1 - Decision-making in Home-grown Value Auctions under Induced Mood States

AU - Drichoutis, Andreas C.

AU - Nayga, Rodolfo M.

AU - Klonaris, Stathis

N1 - Funding Information: We would like to thank Spyros Stachtiaris and Achilleas Vassilopoulos for excellent research assistance and Jayson Lusk for helpful comments. Drichoutis and Klonaris acknowledge financial support from the Secretariat of Research Committee of the Agricultural University of Athens.

PY - 2014/12/1

Y1 - 2014/12/1

N2 - 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.

AB - 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.

KW - Mood

KW - Vickrey auction

KW - affect

KW - preference reversals

KW - rationality

UR - http://www.scopus.com/inward/record.url?scp=85047186135&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85047186135&partnerID=8YFLogxK

U2 - 10.1177/2321022214545270

DO - 10.1177/2321022214545270

M3 - Article

AN - SCOPUS:85047186135

SN - 2321-0222

VL - 2

SP - 141

EP - 163

JO - Studies in Microeconomics

JF - Studies in Microeconomics

IS - 2

ER -

Decision-making in Home-grown Value Auctions under Induced Mood States

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this