Do anomalies disappear in repeated markets?

Loomes, Graham, Starmer, Chris and Sugden, Robert (2003) Do anomalies disappear in repeated markets? The Economic Journal, 113 (486). C153-66. ISSN 0013-0133

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Abstract

There is some evidence that, as individuals participate in repeated markets, ‘anomalies’ tend to disappear. One interpretation is that individuals – particularly marginal traders – are learning to act on underlying preferences which satisfy standard assumptions. An alternative interpretation, the ‘shaping’ hypothesis, is that individuals’ preferences are adjusting in response to cues given by market prices. The paper reports an experiment designed to discriminate between these hypotheses with particular reference to the disparity between willingness to pay and willingness to accept.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Behavioural Economics
Depositing User:	Vishal Gautam
Date Deposited:	01 Mar 2003
Last Modified:	12 Jan 2024 01:24
URI:	https://ueaeprints.uea.ac.uk/id/eprint/16626
DOI:	10.1111/1468-0297.00108

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