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The Effect of Initial Endowments in Experimental Auctions Author info | Abstract | Publisher info | Download info | Related research | Statistics Jay R. Corrigan
Matthew C. Rousu
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We report the results of an experiment designed to test whether initial endowments affect value estimates elicited from experimental auctions. Comparing bids for one unit of a good, two units of a good, and a second unit of a good when endowed with the first unit, we find that willingness to pay for the second unit of a good is, on average, as much as 75% higher when endowed with the first unit. We go on to advance two theories that could potentially reconcile our results with neoclassical consumer theory.
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Paper provided by Kenyon College, Department of Economics in its series Working Papers with number
0601.
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Date of creation: May 2006Date of revision:
Handle: RePEc:ken:wpaper:0601Contact details of provider: Web page: http://economics.kenyon.edu/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Jay Corrigan).
Keywords: Endowment Effect ; Experimental Auctions ; Reciprocity ; Top-Dog Effect ; Other versions of this item:
Find related papers by JEL classification: C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Rousu, Matthew C. & Beach, Robert H. & Corrigan, Jay R., 2005.
"Demand Curve Shifts in Multi-Unit Auctions: Evidence from a Laboratory Experiment ,"
2005 Annual meeting, July 24-27, Providence, RI
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Colson, Greg & Rousu, Matthew & Huffman, Wallace E., 2008.
"Consumers' Willingness to Pay for New Genetically Modified Food Products: Evidence from Experimental Auctions of Intragenic and Transgenic Foods ,"
2008 Annual Meeting, July 27-29, 2008, Orlando, Florida
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Jay R. Corrigan & Matthew C. Rousu, 2006.
"Posted Prices and Bid Affiliation: Evidence from Experimental Auctions ,"
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0602, Kenyon College, Department of Economics.
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"Consumer Willingness to Pay for "Second-Generation" Genetically Engineered Products and the Role of Marketing Information ,"
Journal of Agricultural and Applied Economics ,
Southern Agricultural Economics Association, vol. 37(03), December.
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