Reconsidering the Effect of Market Experience on the “Endowment Effect”

@inproceedings{Engelmann2010ReconsideringTE,
  title={Reconsidering the Effect of Market Experience on the “Endowment Effect”},
  author={Dirk Engelmann and Guillaume Hollard},
  year={2010}
}
Simple exchange experiments have revealed that participants trade their endowment less frequently than standard demand theory would predict. List (2003a) finds that the most experienced dealers acting in a well-functioning market are not subject to this exchange asymmetry, suggesting that a significant amount of market experience is required to overcome it. In order to understand this market-experience effect, we introduce a distinction between two types of uncertainty, choice uncertainty and… CONTINUE READING

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