American Economic Review Vol. 101 No. 3 2011
Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience
Abstract
A vibrant literature has emerged that suggests willingness to pay and willingness to accept measures of value are quite different for inexperienced consumers but that value differences erode with market experience. One potential shortcoming of this literature is that market experience is endogenous. This study presents a framed field experiment that exogenously induces market experience. Empirical findings support the premise that market experience, alone, can eliminate an important market anomaly.
- DOI
- 10.1257/aer.101.3.313
- Volume
- 101
- Issue
- 3
- Pages
- 313-317
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref