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Sense and sensibility of ownership: Type of ownership experience and valuation of goods

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  • (Xiao-Tian) Wang, X.T.
  • Ong, Lay See
  • Tan, Jolene H.

Abstract

This study examined how the type of ownership experience affects the valuation of a good. We hypothesized that the sense of ownership is a psychological derivative of resource acquisition and allocation. We predicted a valuation order of stable ownership or no-ownership < alternating (interchanging) ownership < sudden reversals in ownership. One hundred and sixty-six participants played an object-acquisition “game”, a computer simulation of gaining or losing the ownership of an object (e.g., a pen, a mug, or a flashlight) with different outcome sequences, preprogramed but unbeknownst to the participants. After each game, the participant valued the target object by indicating their willingness-to-pay price, if the last outcome was a loss, or willingness-to-accept price, if the last outcome was a gain. The valuation of an object was highest after experiencing a final reversal in ownership from losses to a final gain or from gains to a final loss, followed by alternating ownership and stable (patrimonial) ownership or constant non-ownership. Wins or losses are not created equal due to different trajectories in how people come to own (lose) objects. The results also suggest that loss aversion is better understood as a specific result of ownership experience.

Suggested Citation

  • (Xiao-Tian) Wang, X.T. & Ong, Lay See & Tan, Jolene H., 2015. "Sense and sensibility of ownership: Type of ownership experience and valuation of goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 171-177.
    • Handle: RePEc:eee:soceco:v:58:y:2015:i:c:p:171-177
    DOI: 10.1016/j.socec.2015.04.010
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    Cited by:

    1. Kamleitner, Bernadette & Dickert, Stephan, 2015. "The two faces of ownership: Introduction to the special section on ownership and economic decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 159-161.
    2. S. Cicognani & P. Figini & M. Magnani, 2016. "Social Influence Bias in Online Ratings: A Field Experiment," Working Papers wp1060, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Walasek, Lukasz & Matthews, William J & Rakow, Tim, 2015. "The need to belong and the value of belongings: Does ostracism change the subjective value of personal possessions?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 195-204.
    4. Domenico Colucci & Chiara Franco & Vincenzo Valori, 2021. "Endowment effects at different time scenarios: the role of ownership and possession," Discussion Papers 2021/279, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Thomas, Veronica L. & Yeh, Marie & Jewell, Robert D., 2015. "Enhancing valuation: the impact of self-congruence with a brand on the endowment effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 178-185.
    6. Charan K. Bagga & Neil Bendle & June Cotte, 2019. "Object valuation and non-ownership possession: how renting and borrowing impact willingness-to-pay," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 97-117, January.
    7. Kirk, Colleen P. & McSherry, Bernard & Swain, Scott D., 2015. "Investing the self: The effect of nonconscious goals on investor psychological ownership and word-of-mouth intentions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 186-194.

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