The endowment effect, the tendency to value possessions more than non-possessions, is a well-known departure from rational choice and has been replicated in numerous settings. We investigate the universality of the endowment effect, its evolutionary significance, and its dependence on environmental factors. We experimentally test for the endowment effect in an isolated and evolutionarily releva...

the purpose of this study is to investigate the relationshipbetween the mutual funds flows and the return of stock index using 65mutual funds in the period of 2008 to 2011.in this study, the dailychanges of the total number of units of mutual funds and the changesof the total values of units of mutual funds were considered as acriteria for the net of mutual funds flows. the results of johansen ...

Simple exchange experiments have identified the fact that participants trade their endowment less frequently than standard demand theory predicts. List (2003) finds, however, that the most experienced dealers acting on a well functioning market are not subject to this “endowment effect”. Thus, it seems that a lot of market experience is needed to overcome the “endowment effect”. In order to und...

The economy we study is comprised of a continuum of individuals. Each has a stochastic endowment that evolves continuously and independently of all other individuals’ endowment processes. Individuals are risk averse and would therefore like to insure their endowment processes. The mutual independence of their endowment processes makes it feasible for them to obtain this insurance by pooling the...

The endowment effect describes the bias that people often value things that they possess more than things they do not possess. Thus, they are often reluctant to trade items in their possession for items of equivalent value. Some nonhuman primates appear to share this bias with humans, but it remains an open question whether they show endowment effects to the same extent as humans do. We investi...

We develop a dynamic portfolio choice model with illiquid alternative assets to analyze the “endowment model,” widely adopted by institutional investors, such as pension funds, university endowments, and sovereign wealth funds. In model, asset has lockup but can be liquidated at any time paying proportional cost. how investors engage in liquidity diversification investing multiple staggered exp...