1. Neoclassical Theory vs Prospect Theory John A. List
Guillaume Dubert

2. I – Aim of the experience
II – Prospect theory vs neoclassical hypothesis
III – Experimental design
IV – Results

3. What List aims to demonstrate
1 . Endowment effect : People attribute more value to things simply because they possess them.
2 . The influence of the endowment effect diminishes with market experience

4. Prospect theory and neoclassical theory

5. Experiments :
Context :

6. Experiments Panel A : Choice Panel B: Panel C : Treatment
Initial endowment
Mug
Both
Mug and Candy
Neither
Nothing
Candy

7. Results
1. Confirmation of the endowment effect

8. Results
2. Impact of market experience