Location of Repository

The Effects of Induced Mood on Preference Reversals and Bidding Behavior in Experimental Auctions

By Andreas Drichoutis, Rodolfo Nayga and Stathis Klonaris

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 behavior in homegrown value auctions. We find that mood states can significantly affect the rate of preference reversal and bidding behavior in experimental auction valuation. Specifically we find that subjects exhibit more rational behavior under a positive mood state than under a negative mood state. Subjects in a positive mood provide lower bid values than others. Regardless of mood states, males tend to have a higher rate of preference reversal than females in mixed gender sessions. However, females tend to commit a higher rate of preference reversal in female only sessions than in mixed sessions while males tend to commit a lower rate of preference reversal when in male only sessions than in mixed sessions.

Topics: C91 - Laboratory, Individual Behavior
Year: 2010
OAI identifier: oai:mpra.ub.uni-muenchen.de:31085

Suggested articles

Preview


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.