The Endowment Effect: Rose-Tinted and Dark-Tinted Glasses
AbstractThe endowment effect, predicted by prospect theory, is a robust finding in behavioral decision theory. Extending recent examinations of the underlying processes, we present evidence for differential perceptions of the traded item, with sellers focusing more on positive features and less on negative features, relative to buyers. In experiment 1, sellers and buyers access information of differing valence in a free recall task. Experiment 2 utilizes error rates and response latencies to demonstrate systematic, and differing, patterns of errors and biases in reactions to valenced stimuli. Experiment 3 utilizes contrast effects to manipulate these foci, thereby moderating the endowment effect. (c) 2005 by JOURNAL OF CONSUMER RESEARCH, Inc..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Consumer Research.
Volume (Year): 32 (2005)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JCR/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kwon, Kyoung-Nan & Lee, Jinkook, 2009. "The effects of reference point, knowledge, and risk propensity on the evaluation of financial products," Journal of Business Research, Elsevier, vol. 62(7), pages 719-725, July.
- Crusius, Jan & van Horen, Femke & Mussweiler, Thomas, 2012. "Why process matters: A social cognition perspective on economic behavior," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 677-685.
- Doron Sonsino, 2011. "A note on negativity bias and framing response asymmetry," Theory and Decision, Springer, vol. 71(2), pages 235-250, August.
- Nathaniel J. S. Ashby & Stephan Dickert & Andreas Glockner, 2012. "Focusing on what you own: Biased information uptake due to ownership," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(3), pages 254-267, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.