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Bargaining in a "Pawn Shop": A field experiment to study WTA

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  • Andrea Morone
  • Paola Tiranzoni

Abstract

This study presents an analysis of hypothetical bias in WTA valuation connected with a bargaining game setting, in a field experiment context. The field of the experiment is the History Channel television "Pawn Stars". We collected a unique dataset that allowed us to analyze not only the gap between real and hypothetical WTA but also how they affect the bargaining game and vice versa. The general aim of this paper is to study the hypothetical bias related to subjects' WTA, and the factors that mostly affect it. The main results, of our paper, show that the hypothetical bias is positive, and it depends mainly on the price range and the type of good.

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  • Andrea Morone & Paola Tiranzoni, 2020. "Bargaining in a "Pawn Shop": A field experiment to study WTA," Framed Field Experiments 00702, The Field Experiments Website.
    • Handle: RePEc:feb:framed:00702
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