On the effect of anchoring on valuations when the anchor is transparently uninformative

Konstantinos Ioannidis, Theo Offerman, Randolph Sloof

Research output: Contribution to journalArticlepeer-review


We test whether anchoring affects people's elicited valuations for a bottle of wine in individual decision making and in markets. We anchor subjects by asking them if they are willing to sell a bottle of wine for a transparently uninformative random price. We elicit subjects' Willingness-To-Accept for the bottle before and after the market. Subjects participate in a double auction market either in a small or a large trading group. The variance in subjects' Willingness-To-Accept shrinks within trading groups. Our evidence supports the idea that markets have the potential to diminish anchoring effects. However, the market is not needed: our anchoring manipulation failed in a large sample. In a concise meta-analysis, we identify the circumstances under which anchoring effects of preferences can be expected.
Original languageEnglish
Pages (from-to)77-94
Number of pages18
JournalJournal of the Economic Science Association
Issue number1
Publication statusPublished - 22 Jun 2020


  • Anchoring
  • Replication
  • Market
  • Experiment


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