Journal Article
No. 2020-11 | April 16, 2020
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: 414 (Discussion Paper: 418)

Links

Cite As

Botao Qin (2020). Does a promise script work to reduce the hypothetical bias? Evidence from an induced value experiment. Economics: The Open-Access, Open-Assessment E-Journal, 14 (2020-11): 1–14. http://dx.doi.org/10.5018/economics-ejournal.ja.2020-11


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