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Anchoring effects in repeated auctions of homogeneous objects: Evidence from Macao
Peter M.W. Chui; Lawrence Hoc Nang Fong; Jinjuan Ren; Lewis H.K. Tam
2022-06
Source PublicationJournal of Economic Psychology
ABS Journal Level2
ISSN0167-4870
Volume90Pages:102514
Abstract

We provide evidence of anchoring effects from the sealed-bid auctions of vehicle plates in Macao. Vehicle plates are homogeneous in use value and differ only in character and numerical sequences. Nevertheless, vehicle plates with particular numerical sequences are consistently and repeatedly auctioned off in Macao, thus providing unique panel data that facilitate the identification of an anchoring effect. We adopt a hedonic pricing model to estimate the rational price of vehicle plates. We find that when bidding on a numerical sequence, bidders anchor on the winning bid in the previous auction, which result in continuation of the winning bid price.

KeywordAnchoring Auction Hedonic Pricing Sealed Bid Vehicle Plates
DOI10.1016/j.joep.2022.102514
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics ; Psychology
WOS SubjectEconomics;psychology, Multidisciplinary
WOS IDWOS:000787551100003
PublisherELSEVIER, RADARWEG 29, 1043 NX AMSTERDAM, NETHERLANDS
Scopus ID2-s2.0-85127050646
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
Faculty of Business Administration
DEPARTMENT OF INTEGRATED RESORT AND TOURISM MANAGEMENT
Corresponding AuthorLewis H.K. Tam
AffiliationFaculty of Business Administration, University of Macau, Taipa, Avenida da Universidade, Macau, China
First Author AffilicationFaculty of Business Administration
Corresponding Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Peter M.W. Chui,Lawrence Hoc Nang Fong,Jinjuan Ren,et al. Anchoring effects in repeated auctions of homogeneous objects: Evidence from Macao[J]. Journal of Economic Psychology, 2022, 90, 102514.
APA Peter M.W. Chui., Lawrence Hoc Nang Fong., Jinjuan Ren., & Lewis H.K. Tam (2022). Anchoring effects in repeated auctions of homogeneous objects: Evidence from Macao. Journal of Economic Psychology, 90, 102514.
MLA Peter M.W. Chui,et al."Anchoring effects in repeated auctions of homogeneous objects: Evidence from Macao".Journal of Economic Psychology 90(2022):102514.
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