scholarly journals A Simple Bargaining Mechanism that Elicits Truthful Reservation Prices

2011 ◽  
Author(s):  
Steven J. Brams ◽  
Todd R. Kaplan ◽  
D. Marc Kilgour
Keyword(s):  
Reservation Prices ◽  
Bargaining Mechanism

scholarly journals A Simple Bargaining Mechanism that Elicits Truthful Reservation Prices

2014 ◽  
Vol 24 (3) ◽  
pp. 401-413
Author(s):  
Steven J. Brams ◽  
Todd R. Kaplan ◽  
D. Marc Kilgour
Keyword(s):  
Reservation Prices ◽  
Bargaining Mechanism

Selling their Best for Little: The Riddle of Ecuador's Failed Attempt to Assist Communal Farmers

2004 ◽  
pp. 123-142
Author(s):  
María José Castillo ◽  
Richard Beilock
Keyword(s):  
Development Strategies ◽  
Irrigation Canals ◽  
Irrigation Systems ◽  
Access To Credit ◽  
Reservation Prices ◽  
Failed Attempt ◽  
Santa Elena

In the 1980s, Ecuador began an expensive project providing primary irrigation canals to the Santa Elena Peninsula. The intended beneficiaries were the region's communal farmers. Instead, virtually all irrigable lands have been sold to large farmers and land speculators, usually at exceedingly low prices. While political and economic abuses explain some of these sales, introduction into a communal setting of an innovation which improved returns to capital relative to labor made land divestitures almost inevitable. With effectively no access to credit, communal farmers had little ability to invest in secondary irrigation systems. Moreover, because users of irrigable lands did not fully control communal sales decisions, as these lands became attractive to others, dispossession risks rose. The net result was that reservation prices for holding these lands fell among communal farmers at the same time of increased demands for these assets by those outside the comunas. Implications for development strategies are also discussed.    

Optimal Reservation Prices in Auctions

1996 ◽  
Vol 106 (438) ◽  
pp. 1271 ◽  
Author(s):  
Dan Levin ◽  
James L. Smith
Keyword(s):  
Reservation Prices

Noise Increases Anchoring Effects

2021 ◽  
pp. 095679762110242
Author(s):  
Chang-Yuan Lee ◽  
Carey K. Morewedge
Keyword(s):  
Theoretical Framework ◽  
Stimulus Feature ◽  
Stimulus Magnitude ◽  
Point Estimates ◽  
Plausible Values ◽  
Anchoring Effects ◽  
Anchoring Bias ◽  
Reservation Prices ◽  
Scalar Variability

We introduce a theoretical framework distinguishing between anchoring effects, anchoring bias, and judgmental noise: Anchoring effects require anchoring bias, but noise modulates their size. We tested this framework by manipulating stimulus magnitudes. As magnitudes increase, psychophysical noise due to scalar variability widens the perceived range of plausible values for the stimulus. This increased noise, in turn, increases the influence of anchoring bias on judgments. In 11 preregistered experiments ( N = 3,552 adults), anchoring effects increased with stimulus magnitude for point estimates of familiar and novel stimuli (e.g., reservation prices for hotels and donuts, counts in dot arrays). Comparisons of relevant and irrelevant anchors showed that noise itself did not produce anchoring effects. Noise amplified anchoring bias. Our findings identify a stimulus feature predicting the size and replicability of anchoring effects—stimulus magnitude. More broadly, we show how to use psychophysical noise to test relationships between bias and noise in judgment under uncertainty.

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