Experimental Design Details
Our experiment consists of 3 Phases.
In Phase I, we anchor subjects' with a random price and elicit their WTA for a good. The anchoring happens via a Yes/No question of the type: "Are you willing to sell the good to the experimenter for X€? The X is determined by rolling a 10-sided die twice and making a price out of the rolls (eg rolls of 6 and 7 give price 6.7€).
In Phase II, subjects participate in a market. . Three different market settings are studied. In the Double auction treatment, participants are grouped in groups of 8 with 4 buyers and 4 sellers and participate in a double auction (for the same anchored good). In the Bilateral bargaining treatment, participants are grouped in pairs (1 buyer and 1 seller) and negotiate a trade. In the control treatment, participants take part in a double auction for a different good.
In Phase III, we elicit WTA for the good again.
After the first two sessions a manipulation check will be performed to verify successful inducement of the initial anchor.