Endowment effect theory , prediction bias and publicly provided goods – an experimental study

  title={Endowment effect theory , prediction bias and publicly provided goods – an experimental study},
  author={Finanzwissenschaftliche Arbeitspapiere},
  • Finanzwissenschaftliche Arbeitspapiere
  • Published 2006
Many studies report on a systematic disparity between the willingness to pay for a certain good (WTP) and the willingness to accept retribution payments in exchange for giving up this good (WTA). Thaler (1980) employs prospect theory to explain this disparity. The literature contains two different interpretations of his endowment effect theory. Accordingly, the disparity is caused either by the disutility from parting with one’s endowment and/or by an extra utility from ownership which is not… CONTINUE READING
2 Citations
36 References
Similar Papers


Publications citing this paper.


Publications referenced by this paper.
Showing 1-10 of 36 references

Willingness to pay and willingness to accept: How much can they differ

  • W. M. Hanemann
  • in: American Economic Review
  • 1991
Highly Influential
8 Excerpts

Prospect Theory: An analysis of decision under uncertainty

  • D. Kahneman, A. Tversky
  • Econometrica 47,
  • 1979
Highly Influential
4 Excerpts

Loss aversion without the endowment effect, and other explanations for the WTA-WTP-disparity

  • T. C. Brown
  • Journal of Economic Behavior and Organization
  • 2005
Highly Influential
4 Excerpts

Neoclassical theory versus prospect theory. evidence from the marketplace

  • J. A. List
  • Econometrica 72(2),
  • 2004
2 Excerpts

Self and others’ willingness to pay for improvements to the paved road surface

  • D. Walton, A Thomas.J., P. D. Cenek
  • Transportation Research Part A
  • 2004
1 Excerpt

Similar Papers

Loading similar papers…