Preference reversals and disparities between willingness to pay and willingness to accept in repeated markets
Loomes, Graham, Starmer, Chris and Sugden, Robert. (2010) Preference reversals and disparities between willingness to pay and willingness to accept in repeated markets. Journal of Economic Psychology, Vol.31 (No.3). pp. 374-387. ISSN 0167-4870Full text not available from this repository.
Official URL: http://dx.doi.org/10.1016/j.joep.2010.01.006
Previous studies suggest that two otherwise robust 'anomalies' - preference reversals and disparities between buying and selling valuations - are eroded when respondents participate in repeated markets. We report an experiment which investigates whether this is true when factors neglected in previous studies are controlled, and which distinguishes between anomalies revealed in the behaviour of individual market participants and anomalies revealed in market prices. Our results confirm the decay of buy/sell disparities, but not of preference reversal. This raises doubts about the hypothesis that, in general, repeated markets reveal anomaly-free preferences, even among the marginal traders who determine prices. (C) 2010 Elsevier B.V. All rights reserved.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HC Economic History and Conditions
B Philosophy. Psychology. Religion > BF Psychology
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||Journal of Economic Psychology|
|Number of Pages:||14|
|Page Range:||pp. 374-387|
|Access rights to Published version:||Restricted or Subscription Access|
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