Selection Bias, Demographic Effects and Ability Effects in Common Value Auction Experiments

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Selection Bias, Demographic Effects and Ability Effects in Common Value Auction Experiments

Inexperienced women, along with economics and business majors, are much more susceptible to the winner’s curse, as are subjects with lower SAT/ACT scores. There are strong selection effects in bid function estimates for inexperienced and experienced subjects due to bankruptcies and bidders who have lower earnings returning less frequently as experienced subjects. These selection effects are not...

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Selection Bias, Demographic Effects, and Ability Effects in Common Value

We find clear demographic and ability effects on bidding in common value auctions: inexperienced women are much more susceptible to the winner's curse than men, controlling for SAT/ACT scores and college major, but they catch up quickly; economics and business majors substantially overbid relative to other majors; and those with superior SAT/ACT scores are much less susceptible to the winner's ...

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Selection Bias, Demographic Effects and Ability Effects in Common Value Auction

Abstract We find clear demographic and ability effects on bidding in common value auction experiments as inexperienced subjects with higher (lower) SAT/ACT scores are less (more) likely to bankrupt than those with middle level scores, inexperienced women suffer far more from the winner’s curse than do men, and economics and business majors substantially overbid relative to other majors. There a...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2005

ISSN: 1556-5068

DOI: 10.2139/ssrn.657581