In this paper, we relax the hard closure property of experiments that have been used to study endowment effect in laboratory. We study differences in benchmark environments (hard closure) and an environment that allows participants to reverse the decisions taken in the laboratory (soft closure)....

In simple exchange experiments participants have been reported to trade their endowments with similar objects less frequently than predicted by the neoclassical demand theory. Recent research has indicated that the experimental support for exchange asymmetry is fragile in alternative...

In this paper, we relax the hard closure property of experiments that have been used to study endowment effect in laboratory. We study differences in benchmark environments (hard closure) and an environment that allows participants to reverse the decisions taken in the laboratory (soft closure)....

We study bidding behavior in first- and second-price sealed-bid auctions with loss-averse agents. Our model predicts overbidding in first-price induced-value auctions consistent with evidence from most laboratory experiments. Substantially different bidding behavior could result in commodity...

We run experiments of first-price auctions with two groups, by which we directly detect the presence of bidders' loss aversion. Each human bidder bids against three pre-programmed computer bidders -- computers independently draw their values from the uniform distribution and bid their values in...

We run experiments of first-price auctions with two groups, by which we directly detect the presence of bidders’ loss-aversion. Each human bidder bids against three preprogrammed computer bidders. The computer bidders independently draw their values from the uniform distribution and bid their...