Title

Naturally Occurring Markets And Exogenous Laboratory Experiments: A Case Study Of The Winner'S Curse

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. © 2008 by the Royal Economic Society (Registered Charity No. 231508).

Publication Date

4-1-2008

Publication Title

Economic Journal

Volume

118

Issue

528

Number of Pages

822-843

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.1468-0297.2008.02144.x

Socpus ID

37349044869 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/37349044869

This document is currently not available here.

Share

COinS