Using Hicksian Surplus Measures to Examine Consistency of Individual Preferences: Evidence from a Field Experiment

John List ()

No 50, Framed Field Experiments from The Field Experiments Website

Abstract: This paper pits neoclassical theory against prospect theory by investigating several clean tests of the competing hypotheses. Consistent with previous work, the field experimental data suggest that prospect theory adequately organizes behavior among inexperienced consumers, whereas consumers with intense market experience behave largely in accordance with neoclassical predictions. The data indicate that the convergence in values occurs entirely because of lower Hicksian equivalent surplus values.

Keywords: endowment effect; field experiment; experience (search for similar items in EconPapers)
JEL-codes: C93 D11 (search for similar items in EconPapers)
Date: 2006
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http://karlan.yale.edu/fieldexperiments/pdf/List_U ... al%20Preferences.doc

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Journal Article: Using Hicksian Surplus Measures to Examine Consistency of Individual Preferences: Evidence from a Field Experiment (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:feb:framed:0050

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