Experimental tests of the endowment effect

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Salience in Experimental Tests of the Endowment Effect

Starting with Knetsch (1989), experiments on the “endowment effect” (Thaler 1980) typically rely on a two-stage procedure. In the first stage, subjects are endowed with a good, such as a mug. In the second stage, the same subjects are given the opportunity to trade this good for another good of similar value, such as a pen. The endowment effect holds that very few subjects chose to trade, somet...

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An Endowment Effect for Risk: Experimental Tests of Stochastic Reference Points∗

The endowment effect has been widely documented. Recent models of reference-dependent preferences indicate that expectations play a prominent role in the presence of the phenomenon. A subset of such expectations-based models predicts an endowment effect for risk when reference points change from certain to stochastic. In two purposefully simple risk preference experiments, eliminating often-dis...

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This paperreporrsa test of the endowmenteffect in an economicanalysisof localizedair pollution. Regressiontechniquesare used to test the significanceof perceivedproperty rights on householdWTP for improvedair qualityversus WTA compensationto forgo an improvementin air quality. Ourexperimentcontributesto the researchintothe WTP/WTAdivergenceby providing a new basis for supportingthe existenceof ...

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ژورنال

عنوان ژورنال: Journal of Economic Behavior & Organization

سال: 1996

ISSN: 0167-2681

DOI: 10.1016/s0167-2681(96)00858-x