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

Briz, Teresa and Drichoutis, Andreas C. and Nayga, Rodolfo M. (2014): Detecting false positives in experimental auctions: A case study of projection bias in food consumption.

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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.

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