ProspectTheory.ppt

An experiment about endowment effectVernon Smith’s version a limited number of tokens(代币) are distributed to half of the participants in a “market.”(half participants are sellers, the other half are buyers) Any participants who own a token at the end the experiment can redeem it for cash. The redemption values differ for different individuals, to represent the fact that the goods traded in markets are more valuable to some people than to others. The same token may be worth $10 to you and $20 to me, and an exchange at any price between these values will be advantageous to both of us An exp