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  4. May 2011
  5. Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience

  • John A. List
American Economic Review
vol. 101, no. 3, May 2011
(pp. 313–17)
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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

Citation

List, John A. 2011. "Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience." American Economic Review, 101 (3): 313–17. DOI: 10.1257/aer.101.3.313

JEL Classification

  • D12 Consumer Economics: Empirical Analysis
  • D40 Market Structure and Pricing: General