Endowment Effect - Noisy Affiliated Utility

Last registered on May 17, 2023


Trial Information

General Information

Endowment Effect - Noisy Affiliated Utility
Initial registration date
May 10, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
May 17, 2023, 2:14 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.



Primary Investigator


Other Primary Investigator(s)

Additional Trial Information

In development
Start date
End date
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
WTP-WTA gaps, the endowment effect, and status quo bias are among the most influential and discussed findings in behavioural economics. Under certain conditions -- ones in which a winner's curse might arise -- rational traders should have WTP-WTA gaps. Such gaps could be caused by people's beliefs (correct or incorrect) that they are operating under these conditions. I present a model that shows how these conditions lead to gaps and makes predictions about how magnitude of gaps should differ: that they are larger where value is uncertain and trading partners are similar (similar in relation to the good). I conduct an experiment with buyers and sellers and measure the WTP-WTA gaps. In one treatment participants trade with another participant (similar trading partner), in another they trade with the experimenter who will return the goods to the shop if they are left at the end of the experiment (dissimilar trading partner). The theory predicts that the former treatment will have larger WTP-WTA gaps than the latter. Participants trade goods and lotteries. The lotteries differ according to how complicated they are. The theory predicts that more complicated lotteries will have larger gaps. In the first stage of the experiment, participants trade mugs. In the second stage there are 14 rounds with different goods, one of which will be implemented. In the third stage there are 16 lotteries, one of which will be implemented. In the survey I ask the participants for their value confidence intervals. That is, the minimum and maximum values between which they are 95% confident that the personal value of the good to them lies.
External Link(s)

Registration Citation

Baker, Edmund. 2023. "Endowment Effect - Noisy Affiliated Utility." AEA RCT Registry. May 17. https://doi.org/10.1257/rct.11385-1.0
Experimental Details


Intervention Start Date
Intervention End Date

Primary Outcomes

Primary Outcomes (end points)
Elicited values of goods and lotteries.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
I elicit the value of 14 goods and 16 lotteries with BDM mechanism.
Experimental Design Details
Participants assigned a role as buyers or sellers.
Participants assigned a treatment: either they trade with another participant or with the experimenter.
Participants are shown goods and lotteries, the lotteries have three levels of complication.
Randomization Method
Randomisation of seat in lab: random draw from bag.
Randomisation of treatment: computer
Randomization Unit
Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters
216 participants
Sample size: planned number of observations
6696 objects (goods or lotteries)
Sample size (or number of clusters) by treatment arms
108 participants trading with experimenter, 108 participants trading with another participant.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials


Document Name
Model Sketch
Document Type
Document Description
Model Sketch

MD5: 7956bb89025d688143adcafecfa08945

SHA1: 984cf9421c6d1005a90791dba4d4b68c9fcfe65e

Uploaded At: May 10, 2023


Institutional Review Boards (IRBs)

IRB Name
German Association for Experimental Economic Research e.V.
IRB Approval Date
IRB Approval Number


Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information


Is the intervention completed?
Data Collection Complete
Data Publication

Data Publication

Is public data available?

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials