Salience in Experimental Tests of the Endowment Effect
We provide a novel account of experimental evidence for the endowment effect using the salience mechanism (Bordalo, Gennaioli, and Shleifer, 2011). The two-stage procedure implemented in experiments implies that the endowed good and other goods are evaluated in different contexts. We describe conditions under which the standard effect occurs, but also account for recent evidence such as a reverse endowment effect for bads and a role for reference prices in modulating the WTA-WTP gap.
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Volume (Year): 102 (2012)
Issue (Month): 3 (May)
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- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012.
"Salience and Consumer Choice,"
463, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2010. "Salience and consumer choice," Economics Working Papers 1252, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2012.
- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, . "Salience and Consumer Choice," Working Paper 62321, Harvard University OpenScholar.
- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience and Consumer Choice," NBER Working Papers 17947, National Bureau of Economic Research, Inc.
- Pedro Bordado & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience and Consumer Choice," Working Papers 501, Barcelona Graduate School of Economics.
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Method and Hist of Econ Thought
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- Koszegi, Botond & Rabin, Matthew, 2004. "A Model of Reference-Dependent Preferences," Department of Economics, Working Paper Series qt0w82b6nm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- 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 1325-48, December.
- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2010.
"Salience Theory of Choice Under Risk,"
NBER Working Papers
16387, National Bureau of Economic Research, Inc.
- Andrei Shleifer & Nicola Gennaioli & Pedro Bordalo, 2011. "Salience theory of choice under risk," 2011 Meeting Papers 1442, Society for Economic Dynamics.
- Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, . "Salience Theory of Choice Under Risk," Working Paper 29210, Harvard University OpenScholar.
- Shleifer, Andrei & Bordalo, Pedro & Gennaioli, Nicola, 2012. "Salience Theory of Choice Under Risk," Scholarly Articles 10636303, Harvard University Department of Economics.
- John A. List, 2003.
"Does Market Experience Eliminate Market Anomalies?,"
The Quarterly Journal of Economics,
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- John List, 2003. "Does market experience eliminate market anomalies?," Natural Field Experiments 00297, The Field Experiments Website.
- Ori Heffetz & John A. List, 2011. "Is the Endowment Effect a Reference Effect?," NBER Working Papers 16715, National Bureau of Economic Research, Inc.
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