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- Title
THE PERSISTENCE OF EVALUATION DISPARITIES.
- Authors
Knetsch, Jack L.; Sinden, J.A.
- Abstract
This paper discusses the persistence of evaluation disparities. Many studies have consistently shown that, contrary to the usual assumption of near equivalence used in most economic analyses, individuals commonly demand far higher sums to give up an entitlement than they are willing to pay to acquire or maintain it. In an experiment involving the avoidance of tasting a bitter substance, sucrose octa-acetate, or SOA, Coursey, Hovis, and Schultze, showed that under some circumstances an initial large difference between values may be greatly reduced by repeated trials. This finding is a significant contribution to the investigation of evaluation disparities. However, just as even an initial disparity may not be present in all evaluations, it does not follow from this single result that all disparities will be eliminated by repetitive iterations and are therefore of no significance. In further repeated trial studies that more closely approximated the conditions of actual market exchanges, the initial large disparities between evaluations of goods showed little or no change. There also appears to be considerable confirming evidence of such continuing asymmetries in commonly observed behavior and institutional rules.
- Subjects
EVALUATION; ECONOMIC demand; MARKETS; COMMERCE; COMMERCIAL products
- Publication
Quarterly Journal of Economics, 1987, Vol 102, Issue 3, p691
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1884224