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The extended self, product valuation, and the endowment effect

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  • Daniel Villanova

    (University of Arkansas)

Abstract

Various explanations have been proposed to account for discrepancies in product valuation, pertaining particularly to the buyer-seller valuation gap called the endowment effect. Previous research has examined the roles of loss sensitivity, strategic responding, differences between buyers and sellers in information processing, self-enhancement, and psychological ownership as causes of the endowment effect. This article presents a conceptual perspective based on the theory of the extended self that integrates previously proposed mechanisms for the endowment effect. The self-extension perspective generates novel predictions about possible moderators of the endowment effect. Further, the self-extension perspective also raises questions for product valuation in general. By integrating previous research and posing new questions, the self-extension perspective provides a new base for the advancement of research on product valuation.

Suggested Citation

  • Daniel Villanova, 2019. "The extended self, product valuation, and the endowment effect," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 357-371, December.
    • Handle: RePEc:spr:amsrev:v:9:y:2019:i:3:d:10.1007_s13162-018-0132-0
    DOI: 10.1007/s13162-018-0132-0
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