We test expectations-based reference dependence in market experiments with probabilistic forced exchange. Koszegi and Rabin (2006) predict that when the probability of forced exchange
increases, individuals cannot expect to stick with the status quo, and should grow more willing to exchange. This mechanism may eliminate and even reverse the "endowment effect"
(Knetsch and Sinden 1984; Kahneman, Knetsch, and Thaler 1990). In a series of experiments with overall 930 subjects, we show some tentative support for the notion that attitudes toward
exchange are influenced by the probability of forced exchange. However, the results are sensitive to small changes in experimental design.
Cerulli-Harms, Annette, Lorenz Goette, and Charles Sprenger.
"Randomizing Endowments: An Experimental Study of Rational Expectations and Reference-Dependent Preferences."
American Economic Journal: Microeconomics,
Design of Experiments: Laboratory, Group Behavior
Consumer Economics: Empirical Analysis
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making