When  the shoe is on the other foot
Subtitle: experimental evidence on evaluation disparities
By: Lucy F. Ackert, Bryan K. Church, and Gerald P. Dwyer.
Contributors: Church, Bryan K.; Dwyer, Gerald P.; Federal Reserve Bank of Atlanta.
Series: Working paper series / Federal Reserve Bank of Atlanta ;; 2005-17; Working paper series (Federal Reserve Bank of Atlanta : Online) ;; 2005-17.
Publisher: Federal Reserve Bank of Atlanta
Published: 2005
Place of publication: [Atlanta, Ga.]
Language: eng
Format: Electronic resource
Description: "Research provides evidence that the method chosen to elicit value has an important effect on a  person's valuation. We hypothesize that role has a crucial effect on decision makers' elicited values:  Buyers prefer to pay less and sellers prefer to collect more. We conduct experimental sessions and  replicate the disparity between willingness to pay and willingness to accept. We conduct additional  sessions in which role is stripped away: Endowed decision makers provide values that are used to  determine a price at which anonymous others transact. Importantly, decision makers' earnings in the  experiment are not affected by the elicited values, but the endowments influence decision makers'  valuations. Our findings suggest that decision makers consider their relative standing, in comparison to  anonymous others, in providing valuations. The disparity between willingness to pay and willingness to  accept disappears when decision makers' endowments ensure that they are at least as well off as other  participants.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 12/12/2005.
Also available in print.
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