Title

Naturally occurring markets and exogenous laboratory experiments: A case study of the winner's curse

Authors

Authors

G. W. Harrison;J. A. List

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Econ. J.

Keywords

COMMON-VALUE AUCTIONS; ASYMMETRIC INFORMATION; INSIDER INFORMATION; PREFERENCE; EFFICIENCY; BIDDERS; Economics

Abstract

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.

Journal Title

Economic Journal

Volume

118

Issue/Number

528

Publication Date

1-1-2008

Document Type

Article

DOI Link

http://dx.doi.org/10.1111/j.1468-0297.2008.02144.x

Language

English

First Page

822

Last Page

843

WOS Identifier

WOS:000254272900013

ISSN

0013-0133

Recommended Citation

"Naturally occurring markets and exogenous laboratory experiments: A case study of the winner's curse" (2008). Faculty Bibliography 2000s. 7042.
https://stars.library.ucf.edu/facultybib2000/7042