This research is supported by National Research University Project; Office of Higher Education Commission (WCU007-HR-57); Integrated Innovation Academic Center, Chulalongkorn University; Centenary Academic Development Project (CU56-HR01); the Ratchadaphiseksomphot Endowment Fund of Chulalongkorn University (RES560530093); the Outstanding Professor of the Thailand Research Fund (DPG5480002); and...

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The genetic endowment underlying giftedness may operate in a far more complex manner than often expressed in most theoretical accounts of the phenomenon. First, an endowment may be emergenic. That is, a gift may consist of multiple traits (multidimensional) that are inherited in a multiplicative (configurational), rather than an additive (simple) fashion. Second, the endowment may not appear al...

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...

Transaction demand refers to the motivation to complete a transaction. As transaction demand increases, owners should sell at lower prices and buyers should buy at higher ones. It was predicted that the endowment effect—the tendency for minimum selling price to exceed maximum buying price for a particular commodity—should be minimized when buyers and sellers have high transaction demand. The re...

Humans often lie strategically. We study this problem in an ultimatum game involving informed proposers and uninformed responders, where the former can send an unverifiable statement about their endowment. If there are some intrinsically honest proposers, a simple message game shows that the rest of them are likely to declare a lower-than-actual endowment to the responders. In the second part o...

We examine the optimal portfolio selection problem of a single agent who receives an unhedgeable endowment. The agent wishes to optimize his/her log-utility derived from his/her terminal wealth. We do not solve this problem analytically but construct a recursive computational algorithm which approximates the optimal one. We present an “intelligent” initial portfolio which requires, numerically,...

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