We consider N.T.U. and T.U. exchange economies in which initial endowments and preferences depend on the agents’private information. Every agent knows his own initial endowment, but his utility over consumption bundles possibly depends on the others’information (common values). We describe general allocation games in which agents make non-veri…able claims about their types and e¤ective deposits...

The endowment effect is the finding that possession of an item adds to its value. We introduce a new procedure for testing this effect: participants are divided into two groups. Possession group participants inspect a numbered lottery ticket and know it is theirs, while inspection group participants only inspect a lottery ticket without being endowed with it. Subsequently participants choose be...

We present a theoretical model of the provision of a durable public good over an in…nite horizion. In each period, there is a societal endowment of which each of n districts owns a share. This endowment can either be invested in the public good or consumed. We characterize the planner’s optimal solution and time path of investment and consumption. We then consider alternative political mechanis...

We present a theoretical model of the provision of a durable public good over an in…nite horizion. In each period, there is a societal endowment of which each of n districts owns a share. This endowment can either be invested in the public good or consumed. We characterize the planner’s optimal solution and time path of investment and consumption. We then consider alternative political mechanis...

In everyday economic life, the endowment effect is a very frequent occurrence. It describes phenomena wherein person values possession more highly when they own it than do not. At present, psychological mechanism of this phenomenon mainly explained by loss aversion, but theory has great defects. A theoretical area behavioral finance effect. order to analyze traits financial market subjects (dec...

This paper focuses on the endowment effect, a psychological bias first used by Nobel Prize-winning economist Richard Thaler in 1980. After completing extensive online and offline documentary research, I examined psychology of effect this paper. Additionally, considered perspectives both buyers sellers to explain why matters terms economic behaviors, offered few countermeasures bias, avoiding pe...

We present a theoretical model of the provision of a durable public good over an in…nite horizion. In each period, there is a societal endowment of which each of  districts owns a share. This endowment can either be invested in the public good or consumed. We characterize the planner’s optimal solution and time path of investment and consumption. We then consider alternative political mechanis...