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The Effect of Ownership History on the Valuation of Objects

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Author Info
Strahilevitz, Michal A
Loewenstein, George

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Abstract

Previous work on the endowment effect has demonstrated that current ownership status affects object valuation and that this effect occurs instantaneously on possession of an object. The current work presents findings from four studies which indicate that the history of past ownership can also affect object valuation. For objects currently in one's possession, we find that valuation increases with duration of ownership. For objects not in one's possession, previous ownership experience increases valuation, and the increase appears to be related to the duration of ownership before loss. In addition, the perceived attractiveness of objects, although not instantly affected by endowment, is found to increase with duration of ownership. Copyright 1998 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Consumer Research.

Volume (Year): 25 (1998)
Issue (Month): 3 (December)
Pages: 276-89
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Handle: RePEc:ucp:jconrs:v:25:y:1998:i:3:p:276-89

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  1. George Loewenstein & Ted O'Donoghue & Matthew Rabin, 2000. "Projection Bias in Predicting Future Utility," Department of Economics, Working Paper Series 1029, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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  2. Botond Koszegi & Matthew Rabin, 2004. "A Model of Reference-Dependent Preferences," Method and Hist of Econ Thought 0407001, EconWPA. [Downloadable!]
  3. James R. Wolf & Hal R. Arkes & Waleed A. Muhanna, 2008. "The power of touch: An examination of the effect of duration of physical contact on the valuation of objects," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3(6), pages 476-482, August. [Downloadable!]
  4. I. Lens & M. Pandelaere & L. Warlop, 2009. "The Role of Materialism in the Endowment Effect," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/578, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  5. David Gal, 2006. "A psychological law of inertia and the illusion of loss aversion," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 23-32, July. [Downloadable!]
  6. Philippe Jehiel & Oliver Compte, 2007. "Bargaining with Reference Dependent Preferences," Levine's Bibliography 122247000000001552, UCLA Department of Economics. [Downloadable!]
  7. Edward J. Lopez & W. Robert Nelson, 2005. "The Endowment Effect in a Public Good Experiment," Experimental 0512001, EconWPA. [Downloadable!]
  8. Avital Moshinsky & Maya Bar-Hillel, 2004. "Loss Aversion and the Status-Quo Label Bias," Discussion Paper Series dp373, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem, revised Apr 2007. [Downloadable!]
  9. Botond Koszegi & Matthew Rabin, 2004. "A Model of Reference-Dependent Preferences," Department of Economics, Working Paper Series 1061, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
  10. Arkes, Hal & Hirshleifer, David & Jiang, Danling & Lim, Sonya, 2007. "A Cross-Cultural Study of Reference Point Adaptation: Evidence from the China, Korea, and the US," MPRA Paper 4009, University Library of Munich, Germany, revised 04 Aug 2008. [Downloadable!]
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