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This NBER working paper investigates the endowment effect, specifically the divergence between Willingness to Accept (WTA) and Willingness to Pay (WTP) for lotteries among 4,000 U.S. adults. The study finds that the endowment effect is not significantly correlated with loss aversion for risky prospects, and that WTA and WTP are weakly correlated while being linked to different clusters of risk preferences. These findings challenge traditional theories of loss aversion and suggest alternative explanations fo
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- dhydhy123123123
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- EN