The Impact of Endowment Framing on Market Prices --- an Experimental Analysis

Posted: 28 May 2001

See all articles by Hans-Jürgen Keppe

Hans-Jürgen Keppe

University of Kiel

Gabriela Meyer-Delius

University of Kiel

Martin Weber

University of Mannheim - Department of Banking and Finance

Abstract

Framing effects are well known in individual decision making. Using experimental markets we investigated whether similar effects could be found in a market environment. Two series of experiments showed that negative framing can give different market prices than a positively framed endowment. We also found that volume may be affected by the framing of the endowment.

Keywords: Experimental Markets; Endowment Effect; Framing Effect

JEL Classification: C91; C92; D50; D80

Suggested Citation

Keppe, Hans-Jürgen and Meyer-Delius, Gabriela and Weber, Martin, The Impact of Endowment Framing on Market Prices --- an Experimental Analysis. Available at SSRN: https://ssrn.com/abstract=251339

Hans-Jürgen Keppe

University of Kiel

Olshausenstr. 40
D-24098 Kiel, 24118
Germany

Gabriela Meyer-Delius

University of Kiel

Olshausenstr. 40
D-24098 Kiel, 24118
Germany

Martin Weber (Contact Author)

University of Mannheim - Department of Banking and Finance ( email )

D-68131 Mannheim
Germany
+49 621 181 1532 (Phone)
+49 621 181 1534 (Fax)

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