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

Bibliographical 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.

Keywords

Mood
Vickrey auction
affect
preference reversals
rationality

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

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10.1177/2321022214545270

Cite this

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

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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