THE ENDOWMENT EFFECT AS BLESSING

Preschoolers and the Endowment Effect

We show that preschoolers exhibit the endowment effect as evidenced by experiments where children generally chose to keep their own toys rather than trading them for similar ones. Furthermore, we relate the emergence of this effect to children's innate psychobiological traits--emotional state, gender, handedness, and digit ratio. The trials were conducted with 141 children across 6 kindergarten...

The Endowment Effect in Orangutans

Research supported by National Science Foundation Human and Social Dynamics grant (SES 0729244) awarded to Sarah F. Brosnan. All procedures used in the research are in accordance with the Guidelines for the Use of Animals in Research and have been approved by the Institutional Animal Care and Use Committee of Georgia State University (IACUC protocol # A07011) and the Zoo Atlanta Scientific Revi...

Cognitive Consistency, the Endowment Effect and

We exhibit three non-standard cases of preference reversal (PR) between choices and valuations of bets. The endowment effect arises as a surprising consequence of the WTA/WTP disparity when the probabilities of winning get close to certainty. We consider a new theory of choice under risk, cognitive consistency (CC) theory, which can predict both standard and non-standard cases of PR, the WTA/WT...

Subjective Value of Information : the Endowment Effect

Value judgments about information and its value are vital for a functioning information society. Subjective valuations, formulated by individuals determine the demand for information and trading in it. Theoretically, these subjective value determinations should be influenced by ownership rights, a phenomenon coined the “Endowment Effect” in psychological study of trading situations. This study ...

IT as Curse and Blessing