An Experimental Study of Precautionary Bidding [Dataset]

DOI

Auctions often involve goods exhibiting a common-knowledge ex-post risk. In such auctions, precautionary bidding predicts that under expected utility, DARA bidders reduce their bids by more than the appropriate risk premium. Because the degree of riskiness of an auctioned good and bidders’ levels of risk aversion are difficult to observe in field settings, we conduct experimental auctions that allow us to identify the precautionary premium directly. We find strong evidence for precautionary bidding. The effect is robust to changes in experimental design features. Our experiment provides the first empirical demonstration of precautionary motives in a strategic setting.

Identifier
DOI https://doi.org/10.11588/data/10060
Metadata Access https://heidata.uni-heidelberg.de/oai?verb=GetRecord&metadataPrefix=oai_datacite&identifier=doi:10.11588/data/10060
Provenance
Creator Trautmann, Stefan T.; Kocher, Martin; Pahlke, Julius
Publisher heiDATA
Contributor Trautmann, Stefan T.; Kocher, Martin; Pahlke, Julius; HeiDATA: Heidelberg Research Data Repository
Publication Year 2015
Funding Reference The Netherlands Organisation for Scientific Research 451-10-023
Rights info:eu-repo/semantics/openAccess
OpenAccess true
Contact Trautmann, Stefan T. (Alfred-Weber-Institute of Economics)
Representation
Resource Type Dataset
Format text/tab-separated-values; text/x-stata-syntax; charset=US-ASCII; application/pdf; text/plain; charset=US-ASCII
Size 75969; 37857; 2440; 8229; 3004
Version 2.1
Discipline Agriculture, Forestry, Horticulture, Aquaculture; Agriculture, Forestry, Horticulture, Aquaculture and Veterinary Medicine; Life Sciences; Social Sciences; Social and Behavioural Sciences; Soil Sciences
Spatial Coverage Munich (Germany)