Temporal Distance and the Endowment Effect

Dongwoo Ko, University of Iowa, USA
William Hedgcock, University of Iowa, USA
Catherine Cole, University of Iowa, USA
Research has demonstrated that people often demand more money to sell a product after they own it relative to what they would offer to pay for the product before they own it. This phenomenon has been termed the endowment effect. Prior studies, however, have not investigated whether this phenomenon is affected by temporal distance. This research demonstrates how temporal distance affects buyers’ willingness to pay and sellers’ willingness to accept.
[ to cite ]:
Dongwoo Ko, William Hedgcock, and Catherine Cole (2011) ,"Temporal Distance and the Endowment Effect", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 836-837.