Discussion Paper

No. 2019-38 | June 17, 2019
Does a promise script work to reduce the hypothetical bias? Evidence from an induced value experiment

Abstract

This paper explores whether a truth-telling promise can work to reduce the hypothetical bias in preference elicitation. Using an induced value experiment in China with a random nth-price auction, the author finds: 1) Hypothetical bias exists in a random nth-price auction with induced values and making a truth-telling promise can reduce the hypothetical bias. 2) All treatments are demand-revealing except for the hypothetical baseline.

Data Set

JEL Classification:

C90, D44, O51

Assessment

  • Downloads: 112

Links

Cite As

Botao Qin (2019). Does a promise script work to reduce the hypothetical bias? Evidence from an induced value experiment. Economics Discussion Papers, No 2019-38, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2019-38


Comments and Questions


Anonymous - Referee Report 1
June 21, 2019 - 10:51

See attached file


Botao Qin - Reply to Referee Report 1
June 26, 2019 - 08:02

see attached file