Journal article
Lottery pricing under time pressure
Theory and Decision, Vol.70(4), pp.431-445
2011
Abstract
This article investigates how subjects determine minimum selling prices for lotteries. We design an experiment where subjects have at every moment an incentive to state their minimum selling price and to adjust the price, if they believe that the price that they stated initially was not optimal. We observe frequent and sizeable price adjustments. We find that random pricing models cannot explain the observed price patterns. We show that earlier prices contain information about future price adjustments. We propose a model of Stochastic Pricing that offers an intuitive explanation for these price adjustment patterns.
Details
- Title
- Lottery pricing under time pressure
- Authors/Creators
- P.R. Blavatskyy (Author/Creator) - Universität InnsbruckW.R. Köhler (Author/Creator) - Energie Baden-Württemberg (Germany)
- Publication Details
- Theory and Decision, Vol.70(4), pp.431-445
- Publisher
- Springer Netherlands
- Identifiers
- 991005543117107891
- Copyright
- © 2009 Springer Science+Business Media, LLC.
- Murdoch Affiliation
- Murdoch University
- Language
- English
- Resource Type
- Journal article
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InCites Highlights
These are selected metrics from InCites Benchmarking & Analytics tool, related to this output
- Collaboration types
- International collaboration
- Citation topics
- 6 Social Sciences
- 6.73 Social Psychology
- 6.73.130 Cognitive Biases
- Web Of Science research areas
- Economics
- Social Sciences, Mathematical Methods
- ESI research areas
- Economics & Business