Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience
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.
Thanks to Lint Barrage for excellent comments. Alec Brandon provided able research assistance. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
John A. List, 2011. "Does Market Experience Eliminate Market Anomalies? The Case of Exogenous Market Experience," American Economic Review, American Economic Association, vol. 101(3), pages 313-17, May. citation courtesy of