The WTP-WTA gap refers to the often observed difference between the price an individual states he is willing to sell an item (WTA), and the price he states he is willing to pay for the same item (WTP). A common explanation for the gap is the so-called endowment effect, first proposed by Thaler (1980). In the literature the endowment effect is explained very simply by appealing to the concept of...

This paper studies the tensions between egalitiarian sentiments, equity concerns, self-interest, and the need for incentives in a society. We propose an experimental game in which subjects can assign their endowment to private or (more efficient) group production activities, with the proceeds from group activity divided either equally, in proportion to contribution, or by combination of the two...

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 ...

Abstract In August 2021, the IUPAC Council approved establishment of Centenary Endowment Board to provide a mechanism through which Fund Donors can support and engage in IUPAC’s international work. Among other responsibilities, shall be responsible for administer funds solicitation efforts development recommending disbursement accordance with Mission and, where relevant, specific designations b...

Over the past two decades, endowments have become an increasingly important component of the typical university’s resource base. We examine how U.S. doctoral institutions’ endowment payout policies and spending decisions are affected by financial market shocks to endowments. While most endowments have formal payout policies intended to smooth payouts over time, we find that universities are mor...