Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 25, 2022 erstellt
Beschreibung:
This paper studies the anchoring effect and loss aversion in the Non-Fungible Token market with complete user-auction-level data from Crypto Punks. With the estimated market price and return indexes of the NFT market from hedonic regression, we measure the anchoring effect and loss aversion of bidders and sellers separately. We confirm that both the anchoring effect and loss aversion appear in the NFT market. Both sellers and bidders deviate toward the last period transaction price, as the reference point, more when they expect potential loss. We interpret this result as sellers’ loss aversion and bidders’ endogenously generated loss aversion. The results are robust when all behavioral biases are measured in Ether. We find evidence that in the NFT market, the more experienced an agent is, the more she deviates toward the reference point. Finally, we do not find evidence in the NFT market showing sellers and bidders act strategically toward their opponents