Aspects of Endowment: A Query Theory of Value Construction

  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},
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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We propose that buying- and selling-price estimates reflect a focus on what the consumer forgoes in the potential exchange and that this notion offers insight into the well-known difference between
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A sequential experiment that provides, at each stage in the sequence, an estimate of the utility to the subject of some amount of a commodity, and to present a few experimental results obtained with the method.
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Preferences inferred from choice are more likely to favor the alternative that is superior with respect to the prominent (most important or salient) attribute than are preferences inferred from
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Anchoring, Activation, and the Construction of Values.
  • Chapman, Johnson
  • Psychology
    Organizational behavior and human decision processes
  • 1999
This work suggests that anchors affect judgments by increasing the availability and construction of features that the anchor and target hold in common and reducing the availability of features of the target that differ from the anchor.