Arbeitspapier
Market experience and willingness to trade: Evidence from repeated markets with symmetric and asymmetric information
Many studies have found a gap between willingness-to-pay and willingness-to-accept that is inconsistent with standard theory. There is also evidence that the gap is eroded by experience gained in the laboratory and naturally occurring markets. This paper argues that the gap and the effects of experience are explained by a caution heuristic. This conjecture is tested in a repeated market experiment with symmetric and asymmetric information. The results support the conjecture: people do seem to use heuristics rather than reacting optimally and their behavior adjusts slowly when the environment changes.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 5
- Classification
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Asymmetric and Private Information; Mechanism Design
- Subject
-
WTA/WTP disparity
endowment effect
market experience
bounded rationality
asymmetric information
Willingness to pay
Beschränkte Rationalität
Asymmetrische Information
Auktionstheorie
Test
- Event
-
Geistige Schöpfung
- (who)
-
Lindsay, Luke
- Event
-
Veröffentlichung
- (who)
-
University of Zurich, Department of Economics
- (where)
-
Zurich
- (when)
-
2011
- DOI
-
doi:10.5167/uzh-51509
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lindsay, Luke
- University of Zurich, Department of Economics
Time of origin
- 2011
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