Pre-counterfactuals and Anticipated Emotions: Factors Affecting the First Bid in Name-your-own-price Auctions

Kuo-Chuan Chu, Kyoung-Nan Kwon

Abstract


This research examines the effects of pre-counterfactual thinking and anticipated emotions on the amount of the first bid placed in Name-Your-Own-Price auctions. The results of Study 1 indicate that upward counterfactuals are elicited more than downward counterfactuals in response to both accepted and rejected bids. Study 2 investigates the effect of imagination of upward counterfactual thinking on the first bid. The results indicate that upward pre-counterfactual thinking about an accepted bid results in anticipated regret, which increases the amount of the first bid; however, the amount is not influenced by anticipated disappointment resulting from pre-counterfactual thinking of a rejected bid.

Full Text: PDF DOI: 10.5539/res.v6n1p34

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Review of European Studies   ISSN 1918-7173 (Print)   ISSN 1918-7181 (Online)

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