IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1809.08500.html
   My bibliography  Save this paper

Eliciting the Endowment Effect under Assigned Ownership

Author

Listed:
  • Patrick Barranger
  • Rohit Nair
  • Rob Mulla
  • Shane Conner

Abstract

In this study we present evidence that endowment effect can be elicited merely by assigned ownership. Using Google Customer Survey, we administered a survey were participants (n=495) were randomly split into 4 groups. Each group was assigned ownership of either legroom or their ability to recline on an airline. Using this experiment setup we were able to generate endowment effect, a 15-20x (at p

Suggested Citation

  • Patrick Barranger & Rohit Nair & Rob Mulla & Shane Conner, 2018. "Eliciting the Endowment Effect under Assigned Ownership," Papers 1809.08500, arXiv.org, revised Oct 2018.
    • Handle: RePEc:arx:papers:1809.08500
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1809.08500
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Curtis R. Price & Roman M. Sheremeta, 2015. "Endowment Origin, Demographic Effects, and Individual Preferences in Contests," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(3), pages 597-619, September.
    2. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience in Experimental Tests of the Endowment Effect," American Economic Review, American Economic Association, vol. 102(3), pages 47-52, May.
    3. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    4. Keith M. Marzilli Ericson & Andreas Fuster, 2014. "The Endowment Effect," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 555-579, August.
    5. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Runqiu & Jiang, Jian & Yu, Chao & Rodenbiker, Jesse & Jiang, Yongmu, 2021. "The endowment effect accompanying villagers' withdrawal from rural homesteads: Field evidence from Chengdu, China," Land Use Policy, Elsevier, vol. 101(C).
    2. Ashworth, Laurence & Darke, Peter R. & McShane, Lindsay & Vu, Tiffany, 2019. "The rules of exchange: The role of an exchange surplus in producing the endowment effect," Organizational Behavior and Human Decision Processes, Elsevier, vol. 152(C), pages 11-24.
    3. repec:cup:judgdm:v:14:y:2019:i:3:p:293-298 is not listed on IDEAS
    4. Xingrong Hou & Jianmin Zeng & Hong Chen & Li Su, 2019. "The endowment effect in the genes: An exploratory study," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(3), pages 293-298, May.
    5. Eduard Marinov, 2017. "The 2017 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 117-159.
    6. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    7. Shtudiner, Zeev & Klein, Galit & Zwilling, Moti & Kantor, Jeffrey, 2019. "The value of souvenirs: Endowment effect and religion," Annals of Tourism Research, Elsevier, vol. 74(C), pages 17-32.
    8. Dertwinkel-Kalt, Markus & Köhler, Katrin, 2016. "Exchange asymmetries for bads? Experimental evidence," European Economic Review, Elsevier, vol. 82(C), pages 231-241.
    9. Björn Bartling & Florian Engl & Roberto A. Weber, 2015. "Game form misconceptions are not necessary for a willingness-to-pay vs. willingness-to-accept gap," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 72-85, July.
    10. Drouvelis, Michalis & Sonnemans, Joep, 2017. "The endowment effect in games," European Economic Review, Elsevier, vol. 94(C), pages 240-262.
    11. Lunn, Pete & Lunn, Mary, 2014. "A Computational Theory of Willingness to Exchange," Papers WP477, Economic and Social Research Institute (ESRI).
    12. Holden, Stein T. & Tilahun, Mesfin, 2020. "Endowment Effects and Loss Aversion in the Risky Investment Game," CLTS Working Papers 1/20, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    13. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    14. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    15. Karle, Heiko & Schumacher, Heiner & Vølund, Rune, 2023. "Consumer loss aversion and scale-dependent psychological switching costs," Games and Economic Behavior, Elsevier, vol. 138(C), pages 214-237.
    16. Keval Amin & Erica Harris, 2022. "The Effect of Investor Sentiment on Nonprofit Donations," Journal of Business Ethics, Springer, vol. 175(2), pages 427-450, January.
    17. Steven Andrew Culpepper & James Joseph Balamuta, 2017. "A Hierarchical Model for Accuracy and Choice on Standardized Tests," Psychometrika, Springer;The Psychometric Society, vol. 82(3), pages 820-845, September.
    18. Lepinteur, Anthony & Waltl, Sofie R., 2020. "Tracking Owners' Sentiments: Subjective Home Values, Expectations and House Price Dynamics," Department of Economics Working Paper Series 299, WU Vienna University of Economics and Business.
    19. Alex Imas & Sally Sadoff & Anya Samek, 2017. "Do People Anticipate Loss Aversion?," Management Science, INFORMS, vol. 63(5), pages 1271-1284, May.
    20. Ulrich Schmidt & Stefan Traub, 2009. "An Experimental Investigation of the Disparity Between WTA and WTP for Lotteries," Theory and Decision, Springer, vol. 66(3), pages 229-262, March.
    21. David Hirshleifer & Ivo Welch, 2002. "An Economic Approach to the Psychology of Change: Amnesia, Inertia, and Impulsiveness," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(3), pages 379-421, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1809.08500. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.