The willingness-to-accept/willingness-to-pay disparity in repeated markets: Loss aversion or 'Bad-Deal' aversion?

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Isoni, Andrea (2009) The willingness-to-accept/willingness-to-pay disparity in repeated markets: Loss aversion or 'Bad-Deal' aversion? pp. 1-21.

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Abstract

Several experimental studies have reported that an otherwise robust regularity - the disparity between Willingness-To-Accept and Willingness-To-Pay - tends to be greatly reduced in repeated markets, posing a serious challenge to existing reference-dependent and referenceindependent models alike. This paper offers a new account of the evidence, based on the assumptions that individuals are affected by good and bad deals relative to the expected transaction price (price sensitivity), with bad deals having a larger impact on their utility ('baddeal' aversion). These features of preferences explain the existing evidence better thanalternative approaches, including the most recent developments of loss aversion models.

Item Type:	Article
Faculty \ School:	Faculty of Science > School of Environmental Sciences
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	Rosie Cullington
Date Deposited:	23 Feb 2011 10:03
Last Modified:	11 Sep 2023 14:31
URI:	https://ueaeprints.uea.ac.uk/id/eprint/24358
DOI:

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