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

@inproceedings{Arbeitspapiere2006EndowmentET,
  title={Endowment effect theory , prediction bias and publicly provided goods – an experimental study},
  author={Finanzwissenschaftliche Arbeitspapiere},
  year={2006}
}
  • 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
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