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Detecting false positives in experimental auctions: A case study of projection bias in food consumption

Author

Listed:
  • Teresa Briz

    (Departamento de Econom a, E.T.S.Ingenieros Agr onomos, Universidad Polit ecnica de Madrid, Madrid,)

  • Andreas C. Drichoutis

    (Department of Agricultural Economics, Agricultural University of Athens, Greece)

  • Rodolfo M. Nayga, Jr

    (Department of Agricultural Economics & Agribusiness, Division of Agriculture, University of Arkansas, Fayetteville, AR 72701, USA,)

Abstract

In this paper we argue that valuable information can be conveyed by looking at data coming from the training rounds of experimental auctions. As a case study, we use data from an experiment that seeks to elaborate on the mediating role of mood states on projection bias. Following a mood induction procedure, subjects are found to bid more under negative mood (as compared to positive mood) for products that are delivered in the future but bid less under negative mood for products that are delivered in present time. We show that if one had neglected insights gained from the training auction data, the researcher would have fallen prey to a case of a false positive result.

Suggested Citation

  • Teresa Briz & Andreas C. Drichoutis & Rodolfo M. Nayga, Jr, 2014. "Detecting false positives in experimental auctions: A case study of projection bias in food consumption," Working Papers 2014-4, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2014-4
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    References listed on IDEAS

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    3. Andreas C. Drichoutis & Rodolfo M. Nayga & Panagiotis Lazaridis, 2011. "The Role of Training in Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 521-527.
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    Cited by:

    1. Nadine Chlaß & Lata Gangadharan & Kristy Jones, 2015. "Charitable Giving and Intermediation," Monash Economics Working Papers 18-15, Monash University, Department of Economics.

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    More about this item

    Keywords

    projection bias; experimental auctions; type I error; false positive;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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