Template-Type: ReDIF-Paper 1.0
Author-Name: Matthew Pearson
Author-Name-First: Matthew
Author-Name-Last: Pearson
Author-Name: Burkhard Schipper
Author-Name-First: Burkhard
Author-Name-Last: Schipper
Author-Workplace-Name: Department of Economics, University of California Davis
Title: The Visible Hand: Finger Ratio (2D:4D) and Competitive Bidding
Abstract: In an experiment using two-bidder first-price sealed bid auctions with symmetric independent private values and 400 subjects, we scan also the right hand of each subject. We study how the ratio of the length of the index and ring fingers (2D:4D) of the right hand, a measure of prenatal hormone exposure, is correlated with bidding behavior and total profits. 2D:4D has been reported to predict competitiveness in sports competition (Manning and Taylor, 2001, and Hoenekopp, Manning, and Mueller, 2006), risk aversion in lottery tasks (Dreber and Hoffman, 2007, Garbarino et al., 2010), and the average profitability of high-frequency traders in financial markets (Coates, Gurnell, and Rustichini, 2009). We do not find any significant correlation between 2D:4D on either bidding or profits. However, there might be racial differences in the correlation between 2D:4D and bidding and profits.
Length: 25
File-URL: https://repec.dss.ucdavis.edu/files/f1rFP8DxqQ2qx1yiGXiXmujY/11-9.pdf
File-Format: application/pdf
Number: 43
Classification-JEL: C72, C91, C92, D44, D81, D87
KeyWords: Hormones, Digit ratio, 2D:4D, Risk behavior, Competition, Competitive behavior, Auctions, Bidding, Endocrinological economics
Creation-Date: 20111024
Handle: RePEc:cda:wpaper:43