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The Endowment Effect in a Public Good Experiment

Author

Listed:
  • Edward J. Lopez

    (San Jose State University)

  • W. Robert Nelson

    (Center for Study of Public Choice)

Abstract

Previous tests of the endowment effect have usually observed WTA-WTP disparities. Here, a public good experiment is employed. Both account framing and duration framing treatments are introduced to alter subjects’ perceived control over an initial endowment. Results do not indicate that preferences shift in a way consistent with the endowment effect.

Suggested Citation

  • Edward J. Lopez & W. Robert Nelson, 2005. "The Endowment Effect in a Public Good Experiment," Experimental 0512001, EconWPA.
  • Handle: RePEc:wpa:wuwpex:0512001
    Note: Type of Document - pdf; pages: 30. Includes experiment forms and protocol.
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    File URL: http://econwpa.repec.org/eps/exp/papers/0512/0512001.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bougherara, Douadia & Denant-Boemont, Laurent & Masclet, David, 2011. "Cooperation and framing effects in provision point mechanisms: Experimental evidence," Ecological Economics, Elsevier, vol. 70(6), pages 1200-1210, April.

    More about this item

    Keywords

    endowment effect; public good; willingness to pay;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D1 - Microeconomics - - Household Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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