The Role of Materialism in the Endowment Effect
AbstractPast research documents an asymmetry between consumers’ willingness to pay for an object and their willingness to accept to give up this object. The current paper presents three studies which demonstrate that materialism moderates this “endowment effect”. Although materialism is not related to willingness-to-pay, materialism is positively related to minimum selling prices for endowed objects. Increasing the attachment to material values with a mortality salience procedure augments the endowment effect even more, particularly for materialists. Our findings validate minimum selling prices for endowed objects as an indirect measure of materialism and qualify the prevalence of the endowment effect.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 09/578.
Length: 27 pages
Date of creation: Apr 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
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