I would like to thank two anonymous reviewers for insightful comments on an earlier version of this study. Don Fullerton, Glenn Harrison, Daniel Kahneman, Liesl Koch, Jack Knetsch and Matthew Rabin also provided comments that significantly improved this line of research. Seminar participants at Cornell University, Harvard University, University of California-Santa Barbara, University of Chicago, Iowa State University, University of Maryland, North Carolina State, University of Pennsylvania (Wharton), Tilburg University, University of Rhode Island and University of South Florida also offered useful comments on this topic. Conference participants at the EAERE meetings in Greece, the NBER meetings in Cambridge, MA, as well as the ESA meetings in Tucson provided useful suggestions. Any errors remain my own. Some of the contents of this study were originally circulated in a draft version of List (2004a).
Using Hicksian Surplus Measures to Examine Consistency of Individual Preferences: Evidence from a Field Experiment
Version of Record online: 8 MAY 2006
The Scandinavian Journal of Economics
Volume 108, Issue 1, pages 115–134, March 2006
How to Cite
List, J. A. (2006), Using Hicksian Surplus Measures to Examine Consistency of Individual Preferences: Evidence from a Field Experiment. The Scandinavian Journal of Economics, 108: 115–134. doi: 10.1111/j.1467-9442.2006.00438.x
- Issue online: 8 MAY 2006
- Version of Record online: 8 MAY 2006
- First version submitted May 2004; final version received April 2005.
- Endowment effect;
- field experiment;
- C 93;
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.