Matt_Simpson comments on [Link] Is the Endowment Effect Real? - Less Wrong

7 Post author: Matt_Simpson 26 February 2013 10:47PM

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Comment author: Matt_Simpson 27 February 2013 04:35:35PM 0 points [-]

This all depends on the valuation elicitation process, which is pretty clever and, assuming that the subjects are acting rationality, does in fact elicit true values - at least as implemented in the paper I linked. As the paper goes into, others unknowningly tweak this process a bit and change the incentive structure, then (surprise) they get WTP-WTA gaps.