Exchange asymmetries for bads? Experimental evidence

B-Tier
Journal: European Economic Review
Year: 2016
Volume: 82
Issue: C
Pages: 231-241

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study provides the first incentivized test of exchange asymmetries for unpleasant items, the so-called bads. While prospect theory predicts an endowment effect for goods and bads, attention-based theories predict an endowment effect for goods, but a reverse exchange asymmetry (that is, a particularly high willingness to switch) for bads. The investigation of exchange asymmetries for bads is a key element to distinguish between the validity of loss aversion- and attention-based theories. As we find a strong endowment effect for bads, our results speak in favor of prospect theory.

Technical Details

RePEc Handle
repec:eee:eecrev:v:82:y:2016:i:c:p:231-241
Journal Field
General
Author Count
2
Added to Database
2026-01-25