Do bidders require a monetary premium for cognitive effort in an auction?

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2013
Volume: 42
Issue: C
Pages: 99-105

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Research on the influence of cognitive effort on decision making has grown in recent years. We argue that when cognitive effort is required, a decision maker requests a monetary premium for his effort. In our experiment, the participants were asked to bid a price for lotteries of differing complexity that required varying amounts of cognitive effort. Furthermore, some participants were given a simple calculator. We show that the increase in cognitive efforts increases the monetary premium they request, and leads to better pricing of similar lotteries.

Technical Details

RePEc Handle
repec:eee:soceco:v:42:y:2013:i:c:p:99-105
Journal Field
Experimental
Author Count
3
Added to Database
2026-01-29