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Replication data for: The Origin of the Winner's Curse: A Laboratory Study

Version
V0
Resource Type
Dataset
Creator
  • Charness, Gary
  • Levin, Dan
Publication Date
2009-02-01
Description
  • Abstract

    The Winner's Curse (WC) is a robust and persistent deviation from theoretical predictions established in experimental economics and claimed to exist in field environments. Recent attempts to reconcile such deviation include "cursed equilibrium" and level-k reasoning. We design and implement a simplified version of the Acquiring-a-Company game that transformed the game to an individual-choice problem that still retains the adverse-selection problem. We further simplified the problem so that simple ordinal reasoning could replace both Bayesian updating and contingent thinking. Our results suggest that the WC reflects bounded rationality in that people have difficulties performing contingent reasoning on future events. (JEL D81, D82)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/mic.1.1.207 (Text)
Publications
  • Charness, Gary, and Dan Levin. “The Origin of the Winner’s Curse: A Laboratory Study.” American Economic Journal: Microeconomics 1, no. 1 (January 2009): 207–36. https://doi.org/10.1257/mic.1.1.207.
    • ID: 10.1257/mic.1.1.207 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Charness, Gary; Levin, Dan (2009): Replication data for: The Origin of the Winner's Curse: A Laboratory Study. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E114313