Regret and information at first price auctions: a study with brazilian decision-makers

Glaucia Miura Ota; Adriano Maniçoba da Silva

doi:10.14807/ijmp.v11i5.1276

PDF HTML

Published: Sep 1, 2020

DOI: https://doi.org/10.14807/ijmp.v11i5.1276

Keywords:

Behavior Regret in auctions Production

Glaucia Miura Ota

Instituto Federal de São Paulo - Campus Suzano

Adriano Maniçoba da Silva

Instituto Federal de São Paulo - Campus Suzano

صندلی اداری

Abstract

Studies point out that the utility of the decision maker in the results depends on the profit. However, acting rationally in an auction environment can be difficult, and the reasons may be due to cognitive aspects such as regret. The "Winner's Regret" bias is characterized by the regret that the winner suffers for bidding too high compared to his opponent. The "Loser’s regret" comes from realizing that his very low bid made him lose. Therefore, the objective of this study was to investigate the effect of regret and information on first price auctions in Brazilian individuals and compare with studies conducted abroad, checking if there is a difference in bias amplitude. Initially, a literature review on behavioral operations, auctions and the effect of regret in auctions was performed. Regarding the methodology, the sample applied was non-probabilistic and for convenience. The experiment design had four treatments: Winner's Regret, Loser's Regret, Both and None, manipulated in a 4x1 experiment with college students. Regarding the winner's regret, the results were similar to studies abroad and in the hypothesis of the loser's regret the results were different.

Downloads

Download data is not yet available.

Issue

Vol. 11 No. 5 (2020): Independent Journal of Management & Production (Special Edition IFLOG)

Section

IFLOG

1. Proposal of Policy for Free Access Periodics

Authors whom publish in this magazine should agree to the following terms:

a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.

b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.

c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).

Proposal of Policy for Periodic that offer Postponed Free Access

Authors whom publish in this magazine should agree to the following terms:

a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.

b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.

c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).

d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
   Version of the article that can be deposited in the repository:
   Pre-print: before being reviewed by pairs.
   Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
   At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.

References

BELL, D. E. (1982) Regret in decision making under uncertainty. Operations research, v. 30, n. 5, p. 961-981.

BELL, D. E. (1983) Risk premiums for decision regret. Management Science, v. 29, n. 10, p. 1156-1166.

BENDOLY, E.; DONOHUE, K.; SCHULTZ, K. L. (2006) Behavior in operations management: Assessing recent findings and revisiting old assumptions. Journal of operations management, v. 24, n. 6, p. 737-752.

BOLTON, G. E.; KATOK, E. (2008) Learning by doing in the newsvendor problem: A laboratory investigation of the role of experience and feedback. Manufacturing & Service Operations Management, v. 10, n. 3, p. 519-538.

CAXITO, F. A. (Coord.) (2014) Logística: um enfoque prático, 2 ed. São Paulo: Saraiva.

CHOPRA, S.; MEINDL, P. (2011) Gestão da cadeia de suprimentos: estratégia, planejamento e operações, 4 ed. São Paulo: Pearson.

DALY, S. P.; NATH, P. (2005) Reverse auctions for relationship marketers. Industrial Marketing Management,v. 34, n. 2, p. 157-166.

DA SILVA, A. M. (2008) Distribution channel structure: an overview of determinants. Revela Journal, v. 2, n. 3, p. 1-13.

DA SILVA, A. M. (2015) Operaçöes Comportamentais: Oportunidades de Pesquisa no Contexto Brasileiro. In: Seminários em Administraçâo, 18, Säo Paulo, Anais...São Paulo: SemeAd, 2015.

ENGELBRECHT-WIGGANS, R. (1989) The effect of regret on optimal bidding in auctions. Management Science, v. 35, n. 6, p. 685-692.

ENGELBRECHT-WIGGANS, R.; KATOK, E. (2008) Regret and feedback information in first-price sealed-bid auctions. Management Science, v. 54, n. 4, p. 808-819.

FENG, T.; KELLER, L. R.; ZHENG, X. (2011) Decision making in the newsvendor problem: A cross-national laboratory study. Omega, v. 39, n. 1, p. 41-50.

KLEMPERER, P. (1999) Auction theory: A guide to the literature. Journal of economic surveys, v. 13, n. 3, p. 227-286.

LEE, Y. S.; SEO, Y. W.; SIEMSEN, E. (2018) Running behavioral operations experiments using Amazon's Mechanical Turk. Production and Operations Management, v. 27, n. 5, p. 973-989.

LOCH, C. H.; WU, Y. (2008) Social preferences and supply chain performance: An experimental study. Management Science, v. 54, n. 11, p. 1835-1849.

MORGAN, J.; STEIGLITZ, K.; REIS, G. (2003) The spite motive and equilibrium behavior in auctions. Contributions in Economic Analysis & Policy, v. 2, n. 1.

OTA, G. M.; DA SILVA, A. M. (2017) Efeito centralização no comportamento de decisores brasileiros. In: Congresso de Logística, 3, Suzano, Anais...Suzano: IFLOG, 2017.

OTA, G. M.; DA SILVA, A. M. (2019) Social preferences and supply chain transactions: an analysis with Brazilian decision makers. Independent Journal of Management & Production, v. 10, n. 4, p. 1288-1304.

SILVA, G. (2015) Operaçöes comportamentais: perspectivas teóricas. In: Seminários em Administraçâo, 18, Säo Paulo, Anais...São Paulo: SemeAd, 2015.

THALER, R. H. (1988) Anomalies: The winner's curse. Journal of Economic Perspectives, v. 2, n. 1, p. 191-202.

Article Sidebar

Main Article Content

Abstract

Downloads

Article Details

References

Most read articles by the same author(s)