Menstrual cycle and competitive bidding

Abstract

In an experiment using two-bidder first-price sealed-bid auctions with symmetric independent private values and 400 participants, we collected information on the female participants' menstrual cycles and the use of hormonal contraceptives. We find that naturally cycling women bid significantly higher than men and earn significantly lower profits than men except during the midcycle when fecundity is highest. We suggest an evolutionary hypothesis according to which women are predisposed by hormones to generally behave more riskily during their fecund phase of their menstrual cycle in order to increase the probability of conception, quality of offspring, and genetic variety. We also find that women on hormonal contraceptives bid significantly higher and earn substantially lower profits than men. This may be due to progestins contained in hormonal contraceptives or a selection effect. We discuss how our study differs from Chen, Katuščák, and Ozdenoren (2012).

Hormonal Contraceptives Do Not Impact Economic Preferences: Evidence from a Randomized Trial

“…Further, we explore the correlation between menstrual cycle phase and our primary outcome measures in the naturally cycling placebo group. Earlier studies on the menstrual cycle and economic preferences report inconclusive and sometimes contradictory results (e.g., Buser 2012b, Chen et al 2013, Pearson and Schipper 2013, Wozniak et al 2014 but mainly rely on self-reported menstrual cycle data, which can be expected to be less reliable than using hormonal data to define cycle phases. In our analysis with hormonal measurements, we find no significant relation between menstrual cycle phase and altruism, financial risk taking, or willingness to compete.…”

“…Some previous studies have found hormonal variation over the menstrual cycle to relate to risk taking (Bröder andHohmann 2003, Chavanne andGallup 1998; see also Buser 2012b and Schipper 2014 for null results), competitiveness (Buser 2012b, Wozniak et al 2014, behavior in social preference games (Buser 2012a), loss aversion (Lazzaro et al 2016), and competitive bidding (Pearson andSchipper 2013, Schipper 2015). Taken together, this literature suggests that hormones associated with fertility and reproduction, like those in OCs, may affect important economic preferences.…”

“…Taken together, this literature suggests that hormones associated with fertility and reproduction, like those in OCs, may affect important economic preferences. That OCs may impact preferences is further supported by studies comparing the preferences among naturally cycling women, to those of women using OCs (Chavanne and Gallup 1998, Buser 2012b, Chen et al 2013, Pearson and Schipper 2013, Wozniak et al 2014, although these studies do not establish a causal relationship.…”

“…The study was conducted as a clinical randomized placebo-controlled trial in which participants were randomly allocated to a treatment with the most widely prescribed OC in Sweden, Neovletta®, containing 150 µg levonorgestrel and 30 µg ethinylestradiol, or to a placebo pill. 8 The main ingredient in this contraceptive pill is synthetic progesterone, which previous research indicates may be the key hormone correlated with preferences over the menstrual cycle (Buser 2012b, Pearson andSchipper 2013). Our sample comprises 340 healthy women, aged 18-35 years, who were willing to start using OCs.…”

Biology and Gender in the Labor Market

“…Importantly, women's responses to competitive situations have also been linked to their testosterone levels (Bateup et al 2002), as well as to their menstrual cycles and contraceptive pill usage (Chen, Katuščák, and Ozdenoren 2013, Pearson and Schipper 2013, Wozniak, Harbaugh, and Mayr 2014. Bateup et al (2002) find, for example, that in the leadup to a competitive match, female rugby players experience an anticipatory rise in testosterone that is positively associated with increased self-reported focus and team bonding.…”