The Effect of Individual Temperament and Character on Bidding Behavior
نویسنده
چکیده
This study investigates individual temperament and character effects on bidding behavior in a first-price sealed-bid auction with independent private value frameworks. Preceding studies on experimental first-price auctions reported that selection biases, such as risk attitude (Cox et al. 1988), gender (Ham and Kagel, 2006), sex hormone cycle (Chen et al. 2013; Pearson and Schipper, 2013), cause positive and negative effects on bidding behavior. The present study applied a psychological personality trait, Temperament Character Inventory (TCI), to analyze whether individual personality affects bidding behavior. The experimental results show that Novelty Seeking (NS) significantly decreases bids and Harm Avoidance (HA) significantly increases bids. Furthermore, cross term of elicited risk preferences and NS have significant effect on bidding behavior.
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