Pearson, Matthew and Schipper, Burkhard C (2009): The Visible Hand: Finger ratio (2D:4D) and competitive behavior.
Download (177kB) | Preview
In an experiment using two-bidder first-price sealed bid auctions with symmetric independent private values, we scan also the right hand of each subject. We study how the ratio of the length of the index and ring fingers (2D:4D) of the right hand, a measure of prenatal hormone exposure, is correlated with bidding behavior and total profits. 2D:4D has been reported to predict competitiveness in sports competition (Manning and Taylor, 2001, and Hoenekopp, Manning and Mueller, 2006), risk aversion in an investment task (Dreber and Hoffman, 2007), and the average profitability of high-frequency traders in financial markets (Coates, Gurnell and Rustichini, 2009). We do not find any significant correlation between 2D:4D and both bidding or profits. Yet, our study raises an issue of ethnic differences with respect to 2D:4D.
|Item Type:||MPRA Paper|
|Original Title:||The Visible Hand: Finger ratio (2D:4D) and competitive behavior|
|Keywords:||hormones; digit ratio; 2D:4D; risk behavior; competition; competitive behavior; bidding; endocrinological economics|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior
D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D87 - Neuroeconomics
|Depositing User:||Burkhard C Schipper|
|Date Deposited:||14. Aug 2009 15:56|
|Last Modified:||12. Feb 2013 15:38|
Apicella, C.L., Dreber, A., Campbell, B., Gray, P.B., Hoffman, M., and Little, A.C. (2008). Testosterone and financial risk preferences, Evolution and Human Behavior 29, 384-390.
Blau, F. and Kahn, L. (2000). Gender differences in pay, Journal of Economic Perspectives 14, 75-99.
Cameron, C., Gelbach, J., and Miller, D. (2008). Bootstrap-based improvements for inference with clustered errors, Review of Economics and Statistics 90, 414-427.
Casari, M., Ham, J. and Kagel, J. (2007). Selection bias, demographic effects and ability effects in common value auction experiments, American Economic Review 97, 1278-1304.
Case, A. and Paxson, C. (2008). Stature and status: Height, ability, and labor market outcomes, Journal of Political Economy 116, 499-532.
Cesarini, D., Dawes, C.T., Johannesson, M., Lichtenstein, P., and Wallace, B. (2009). Genetic variation in preferences for giving and risk taking, Quarterly Journal of Economics 124, 809-842.
Coates, J.M., Gurnell, M., and Rustichini, A. (2009). Second-to-fourth digit ratio predict success among high-frequency financial traders, Proceedings of the National Academy of Sciences 106, 623-628.
Chen Y., Katuscak, P. and Ozdenoren, E. (2009). Why can't a woman bid more like a man?, mimeo.
Chen, Y., Katuscak, P. and Ozdenoren, E. (2007). Sealed bid auctions with ambiguity: Theory and experiments, Journal of Economic Theory 136, 513-535.
Dreber, A., Apicella, C. L., Eisenberg, D.T.A., Garcia, J.R., Zamoree, R.S., Lume, J.K., and Campbell, B. (2009). The 7R polymorphism in the dopamine receptor D4 gene (DRD4) is associated with financial risk taking in men, Evolution and Human Behavior 30, 85-92.
Dreber, A. and Hoffman, M. (2007). Portfolio selection in utero, mimeo., Stockholm School of Economics.
Fischbacher, U. (2007). z-Tree: Zurich toolbox for ready-made economic experiments, Experimental Economics 10, 171-178.
Greiner, B. (2004). An online recruitment system for economic experiments, in: Kremer, K., Macho, V. (eds.), Forschung und wissenschaftliches Rechnen 2003. GWDG Bericht 63, Goettingen: Ges. für Wiss. Datenverarbeitung, 79-93.
Ham, J. and Kagel, J. (2006). Gender effects in private value auctions, Economics Letters 92, 375-382.
Hoenekopp, J., Bartholdt, L., Beier, L., and Liebert, A. (2007). Second to fourth digit length ratio (2D:4D) and adult sex hormone levels: New data and a meta-analytical review, Psychoneuroendocrinology 32, 313-321.
Hoenekopp, J., Manning, J.T., and Mueller, C. (2006). Digit ratio (2D:4D) and physical fitness in males and females: Evidence for effects of prenatal androgens on sexually selected traits, Hormones and Behavior 49, 545-549.
Kanazawa, S. and Kovar, J.L. (2004). Why beautiful people are more intelligent, Intelligence 32, 227-243.
Kosfeld, M., Heinrichs, M., Zak, P., Fischbacher, U. and Fehr, E. (2005). Oxytocin increases trust in humans, Nature 435, 673-676.
Krishna, V. (2002). Auction theory, Academic Press.
Manning, J.T. (2002). Digit ratio. A pioneer to fertility, behavior and health, Rutgers University Press.
Manning, J.T., Barley, L., Lewis-Jones, I., Walton, J., Trivers, R.L., Thornhill, R., Singh, D., Rhode, P., Bereckzei, T., Henzi, P., Soler, M., and Sved, A. (2002). The 2nd to 4th digit ratio, sexual dimorphism, population differences and reproductive success: Evidence for sexually antagonistic genes, Evolution and Human Behavior 21, 163-183.
Manning, J.T., Scutt, D., Wilson, J. and Lewis-Jones, D.I. (1998). The ratio of 2nd to 4th digit length: A predictor of sperm numbers and concentrations of testosterone, lutenizing hormones and oestrogen, Human Reproduction 13, 3000-3004.
Manning, J.T., Stewart, A, Bundred, P.E., and Trivers, R.L. (2004). Sex and ethnic differences in 2nd to 4th digit ratio of children, Early Human Development 80, 161-168.
Manning, J.T., and Taylor, R.P. (2001). Second to fourth digit ratio and male ability in sport: Implications for sexual selection in humans, Evolution and Human Behavior 22, 61-69.
Millet, K. and Dewitte, S. (2006). Second to fourth digit ratio and cooperative behavior, Biological Psychology 71, 111-115.
Paul, S.N., Bernet, S.K., Cherkas, L.F., Andrew, T., and Spector, T.D. (2006). Heritability of the second to fourth digit ratio (2D:4D): A twin study, Twin Research and Human Genetics 9, 215-219.
Pearson, M. and Schipper, B.C. (2009). Menstrual cycle and competitive bidding, mimeo., University of California, Davis.
Sanders, G., Bereczkei, T., Csatho, A., and Manning, J.T. (2005). The ratio of the 2(nd) ro 4(th) finger length predicts spatial ability in men but not in women, Cortex 41, 789-795.
Van den Bergh, B. and Dewitte, S. (2006). Digit ratio (2D:4D) moderates the impact of sexual cues on men's decisions in ultimatum games, Proceeding of the Royal Society B 273, 2091-2095.
Zak, P., Kurzban, R. and Matzner, W.T. (2005). Oxytocin is associated with human trustworthiness, Hormones and Behavior 48, 522-527.
Zak, P., Stanton, A., and Ahmadi, S. (2007). Oxytocin increases generosity in humans, PLoS One 2, e1128.