Book ChapterDOI
Experimental Tests of the Endowment Effect and the Coase Theorem
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In this paper, the Coase theorem predicts that about half the mugs will trade, but observed volume is always significantly less than the predicted volume, suggesting that transactions costs cannot explain the undertrading for consumption goods.Abstract:
Contrary to theoretical expectations, measures of willingness to accept greatly exceed measures of willingness to pay. This paper reports several experiments that demonstrate that this "endowment effect" persists even in market settings with opportunities to learn. Consumption objects (e.g., coffee mugs) are randomly given to half the subjects in an experiment. Markets for the mugs are then conducted. The Coase theorem predicts that about half the mugs will trade, but observed volume is always significantly less. When markets for "induced-value" tokens are conducted, the predicted volume is observed, suggesting that transactions costs cannot explain the undertrading for consumption goods.read more
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Journal ArticleDOI
The Endowment Effect: Rose-Tinted and Dark-Tinted Glasses
TL;DR: In this article, the authors present evidence for differential perceptions of the traded item, with sellers focusing more on positive features and less on negative features relative to buyers, and demonstrate systematic and differing, patterns of errors and biases in reactions to valenced stimuli.
Journal ArticleDOI
Changes in Athletic Identity Following Team Selection: Self-Protection versus Self-Enhancement
TL;DR: In this article, self-protection and self-enhancement were investigated in a field study of female athletes who were vying for selection in state all-star teams and found that self protection processes may be related to short-term changes in domain-specific self-concept measures such as athletic identity.
Journal ArticleDOI
Willingness-to-Pay for Food Safety: An Experimental Investigation of Quality Certification on Bidding Behaviour
TL;DR: Au cours d'une experimentation, les auteurs ont etudie l'impact d'un nouvelle information concernant la securite alimentaire sur le consentement a payer des individus pour des produits alimentaires.
Journal ArticleDOI
The Risk Perceptions of Individual Investors
TL;DR: In this paper, the authors studied the risk perceptions of individual investors by asking experimental questions to 2,226 members of a consumer panel and analyzed their responses in order to find which risk measures they implicitly use.
Posted Content
Investment behavior in a constrained dictator game
Michael Coenen,Dragan Jovanovic +1 more
TL;DR: In this paper, a constrained dictator game is considered where the dictator splits a pie which will be subsequently created through simultaneous investments by herself and the recipient, and they find that constrained dictators and recipients invest less than a model with self-interested players would predict.
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Journal ArticleDOI
Loss Aversion in Riskless Choice: A Reference-Dependent Model
Amos Tversky,Daniel Kahneman +1 more
TL;DR: In this article, the authors present a reference-dependent theory of consumer choice, which explains such effects by a deformation of indifference curves about the reference point, in which losses and disadvantages have greater impact on preferences than gains and advantages.
Journal ArticleDOI
Toward a positive theory of consumer choice
TL;DR: The economic theory of the consumer is a combination of positive and normative theories as discussed by the authors, which describes how consumers should choose, but it is also described how they do choose, and in certain well-defined situations many consumers act in a manner that is inconsistent with economic theory.
Posted Content
Fairness as a Constraint on Profit Seeking: Entitlements in the Market
TL;DR: In customer or labor markets, it is acceptable for a firm to raise prices (or cut wages) when profits are threatened, and to maintain prices when costs diminish as mentioned in this paper, and several market anomalies are explained by assuming that these standards of fairness influence the behavior of firms.
Journal ArticleDOI
De gustibus non est disputandum
George J. Stigler,Gary S. Becker +1 more
TL;DR: In this paper, the Notre collegue Christophe Longuet nous offre une traduction inedite de cet article canonique precedee d'une presentation, en tout point remarquable, vous sera certainement tres utile.