Consider Apprendix 2
A) What percentage of all traders who were assigned to A chose to change?
B) What proportion of all traders who were assigned to B chose to change?
C) Is the difference significantly non-zero? Use the significance level 5%.
Appendix 2 regresa trade goodb Source SS df MS Number of obs - 148 F(1 146) - 0.05 Prob > F 0.8228 R-squared 0.0003 Ady R-squared - -0.0065 Root MSE .47612 Model Residual .011404811 33.0967033 1 146 .011404811 .226689749 Total 33.1081081 147 .225225225 trade Coef. Std. Err. t P>ti [95% Conf. Intervall goodb .0175824 .3285714 .0783882 .0569072 0.22 5.77 0.823 0.000 -.1373397 .2161032 1725045 .4410396 cons A consumer is given the chance to buy a baseball card for $1, but he declines the trade. If the consumer is now given the baseball card, will he be willing to sell it for $12 Standard consumer theory suggests yes, but behavioral economists have found that "ownership" tends to increase the value of goods to consumers. That is, consumers may hold out for some amount more than $1 (for example, $1.20) when selling the card, even though he was willing to pay some amount less than $1 (for example $0.88) when buying it. Behavioral economists call this phenomenon the "endowment effect". John List investigated the endowment effect in a randomized experiment involving sports memorabilia traders at a sports-card show. Traders were randomly given one of two sports collectibles, say good A or good B, that had approximately equal market value. Those receiving good A were then given the option of trading good A for good B with the experimenter; those receiving good B were given the option of trading good B for good A with the experimenter. The data is collected by Professor John List of the University of Chicago, and were used in his paper Does Market Experience Eliminate Market Anomalies," Quarterly Journal of Economics, February 2003, 118(1), pp. 41-71. The data contain information on 148 randomly selected traders who attended trading card show in Orlando, Florida in 1998. Variable Definition trade = 1 if subject traded good he was given for other good, otherwise goodb = 1 if subject was given good b, 0 otherwise dealer= 1 if subject was a dealer, 0 otherwise trades p_m Number of trades per month reported by the subject years_trade Number of years that subject has been trading male = 1 if male, 0 otherwise age age (in years) Appendix 2 regresa trade goodb Source SS df MS Number of obs - 148 F(1 146) - 0.05 Prob > F 0.8228 R-squared 0.0003 Ady R-squared - -0.0065 Root MSE .47612 Model Residual .011404811 33.0967033 1 146 .011404811 .226689749 Total 33.1081081 147 .225225225 trade Coef. Std. Err. t P>ti [95% Conf. Intervall goodb .0175824 .3285714 .0783882 .0569072 0.22 5.77 0.823 0.000 -.1373397 .2161032 1725045 .4410396 cons A consumer is given the chance to buy a baseball card for $1, but he declines the trade. If the consumer is now given the baseball card, will he be willing to sell it for $12 Standard consumer theory suggests yes, but behavioral economists have found that "ownership" tends to increase the value of goods to consumers. That is, consumers may hold out for some amount more than $1 (for example, $1.20) when selling the card, even though he was willing to pay some amount less than $1 (for example $0.88) when buying it. Behavioral economists call this phenomenon the "endowment effect". John List investigated the endowment effect in a randomized experiment involving sports memorabilia traders at a sports-card show. Traders were randomly given one of two sports collectibles, say good A or good B, that had approximately equal market value. Those receiving good A were then given the option of trading good A for good B with the experimenter; those receiving good B were given the option of trading good B for good A with the experimenter. The data is collected by Professor John List of the University of Chicago, and were used in his paper Does Market Experience Eliminate Market Anomalies," Quarterly Journal of Economics, February 2003, 118(1), pp. 41-71. The data contain information on 148 randomly selected traders who attended trading card show in Orlando, Florida in 1998. Variable Definition trade = 1 if subject traded good he was given for other good, otherwise goodb = 1 if subject was given good b, 0 otherwise dealer= 1 if subject was a dealer, 0 otherwise trades p_m Number of trades per month reported by the subject years_trade Number of years that subject has been trading male = 1 if male, 0 otherwise age age (in years)
