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:
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- DOI:10.5539/res.v6n1p34
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