Inducing Risk-Neutral Preferences: Further Analysis of the Data.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1995
Volume: 11
Issue: 1
Pages: 65-79

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

The lottery payoff procedure does not successfully induce risk-neutral bidding behavior in first-price, sealed-bid auctions. This conclusion follows from both ordinary-least-squares estimation with natural data and least-absolute-deviation estimation with transformed data from numerous experimental designs. Lottery payoffs do not succeed in inducing behavior predicted from standard expected utility theory assumptions or from assumed utility from winning and/or income thresholds. In contrast, first-price auction experiments with monetary payoffs yield results that are consistent with general models of bidding in the independent private values information environment. Copyright 1995 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:11:y:1995:i:1:p:65-79
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25