Aspects of Endowment: A Query Theory of Value Construction

@article{Johnson2007AspectsOE,
  title={Aspects of Endowment: A Query Theory of Value Construction},
  author={Eric J. Johnson and Gerald H{\"a}ubl and Anat Keinan},
  journal={University of Alberta School of Business Research Paper Series},
  year={2007}
}
How do people judge the monetary value of objects? One clue is provided by the typical endowment study (D. Kahneman, J. L. Knetsch, & R. H. Thaler, 1991), in which participants are randomly given either a good, such as a coffee mug, that they may later sell ("sellers") or a choice between the good and amounts of cash ("choosers"). Sellers typically demand at least twice as much as choosers, inconsistent with economic theory. This result is usually explained by an increased weighting of losses… 
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407 Citations
Highly Influential Citations
35
Background Citations
124
Methods Citations
35
Results Citations
20

407 Citations

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Citation Type

The endowment effect: Loss aversion or a buy-sell discrepancy?
TLDR
A third condition is introduced, in which participants receive an object and are asked how much they are willing to pay to keep it (Pay-to-Keep), and found support for the buy-sell strategy mechanism.
Supplemental Material for The Endowment Effect and Beliefs About the Market
The endowment effect occurs when people assign a higher value to an item they own than to the same item when they do not own it, and this effect is often taken to reflect an ownership-induced change…
The Endowment Effect and Beliefs About the Market
TLDR
It is argued that the endowment effect may largely reflect “adaptively rational” behavior on the part of both buyers and sellers (given their beliefs about relevant markets) rather than any ownership-induced bias or change in intrinsic preferences.
The Seller's Sense: Buying–Selling Perspective Affects the Sensitivity to Expected Value Differences
Previous work comparing pricing decisions by buyers and sellers has primarily focused on the endowment effect, the phenomenon that selling prices exceed buying prices. Here, we examine whether…
The evolution of the endowment effect
Constructing preference from experience: the endowment effect reflected in external information search.
TLDR
The results add to the increasing evidence that the endowment effect is due, in part, to differences in predecisional information search, by examining differences in search termination in external search.
Unpacking buyer-seller differences in valuation from experience: A cognitive modeling approach
TLDR
A cognitive modeling approach is developed to formalize, disentangle, and compare alternative psychological accounts of buyer-seller differences in pricing decisions of monetary lotteries, and reveals a substantial contribution of simple response bias.
The Influence of Differential Focus on the Endowment Effect in Risky Objects
The robust finding that people systematically assign higher monetary values to sell a good they own than they pay to acquire it (i.e., the endowment effect) was recently explained by the differential…
Does the Endowment Effect Prevail When Traders Act Strategically?
Trading is more than a personal valuation of own property. Traders try to anticipate the WTP potential buyers have for the good they want to sell. They do not focus on the value the entitlement has…
A distributional and dynamic theory of pricing and preference.
TLDR
A new computational model is formulating that assumes an initial bias or anchor that depends on type of price task (buying, selling, or certainty equivalents) and a stochastic evaluation accumulation process that depend on gamble attributes and provides a superior account of the distributional and dynamic properties of price.
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References

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