Regret, disappointment and the endowment effect
The endowment effect is the finding that minimum selling prices for a particular good exceed maximum buying prices. We build on and extend previous research showing that emotions influence the endowment effect, and reveal that the two negatively valenced decision-related emotions, regret and disappointment, have distinct effects on the valuation of an object. We found that an induction of regret eliminates the classic endowment effect, whereas an induction of disappointment reverses it. The findings demonstrate the necessity of a specific emotion approach to understand the effects on decision making.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Dijk, Eric & van Knippenberg, Daan, 1998. "Trading wine: On the endowment effect, loss aversion, and the comparability of consumer goods," Journal of Economic Psychology, Elsevier, vol. 19(4), pages 485-495, August.
- Jochen Reb & Terry Connolly, 2007. "Possession, feelings of ownership and the endowment effect," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 2, pages 107-114, April.
- Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Carmon, Ziv & Wertenbroch, Klaus & Zeelenberg, Marcel, 2003. " Option Attachment: When Deliberating Makes Choosing Feel Like Losing," Journal of Consumer Research, Oxford University Press, vol. 30(1), pages 15-29, June.
- Marcel Zeelenberg & Rob M. A. Nelissen & Seger M. Breugelmans & Rik Pieters, 2008. "On emotion specificity in decision making: why feeling is for doing," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 18-27, January.
- 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.
- Reb, Jochen & Connolly, Terry, 2009. "Myopic regret avoidance: Feedback avoidance and learning in repeated decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 109(2), pages 182-189, July.
- Lin, Chien-Huang & Chuang, Shih-Chieh & Kao, Danny T. & Kung, Chaang-Yung, 2006. "The role of emotions in the endowment effect," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 589-597, August.
- Lyle Brenner & Yuval Rottenstreich & Sanjay Sood & Baler Bilgin, 2007. "On the Psychology of Loss Aversion: Possession, Valence, and Reversals of the Endowment Effect," Journal of Consumer Research, Oxford University Press, vol. 34(3), pages 369-376, 05.
- Loewenstein, George & Adler, Daniel, 1995. "A Bias in the Prediction of Tastes," Economic Journal, Royal Economic Society, vol. 105(431), pages 929-37, July.
- van Dijk, Eric & van Knippenberg, Daan, 1996. "Buying and selling exchange goods: Loss aversion and the endowment effect," Journal of Economic Psychology, Elsevier, vol. 17(4), pages 517-524, August.
- Zeelenberg, M. & Pieters, R., 2004. "Beyond valence in customer dissatisfaction : A review and new findings on behavioral responses to regret and disappointment in failed services," Other publications TiSEM 7bfb4aa9-cba7-4786-850d-1, Tilburg University, School of Economics and Management.
- van de Ven, Niels & Zeelenberg, Marcel & van Dijk, Eric, 2005. "Buying and selling exchange goods: Outcome information, curiosity and the endowment effect," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 459-468, June.
- Strahilevitz, Michal A & Loewenstein, George, 1998. " The Effect of Ownership History on the Valuation of Objects," Journal of Consumer Research, Oxford University Press, vol. 25(3), pages 276-89, December.
When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:32:y:2011:i:6:p:962-968. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.