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We hypothesise and confirm a previously unnoticed pattern within pre-existing data on the endowment effect, collected via seven experiments employing the original design. Subjects with low valuations in binary choice relative to other subjects set a proportionally higher willingness to accept....
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We argue that choices that are modified, absent any informational change, can be characterized as mistakes. In an experiment, we allow subjects to choose from budgets over binary lotteries. To identify mistakes, which we interpret as deviations from optimizing behavior, we allow subjects to...
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While the outbreak of the COVID-19 disease has caused asset markets to experience an unprecedented spike of risk and … after the city’s lockdown. Our findings are robust to different model specifications. The implication is that the risk … associated with the pandemic is localised and transitory in nature. People may be able to internalise the risk by residing in low …
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