To Trade Or Not?: Removing Trading Motivation Eliminates the Endowment Effect

Laurence Ashworth, Queens University, Canada
Lindsay McShane, Queens University, Canada
Tiffany Vu, Queens University, Canada
The current work suggests that owner/non-owner discrepancies can exist because consumers are typically required to specify prices at which they would trade. Consequently, we predict that owners/non-owners likely set prices sufficiently above/below perceived worth to motivate trade. When ownership and trading are separated we find that the endowment effect disappears.
[ to cite ]:
Laurence Ashworth, Lindsay McShane, and Tiffany Vu (2012) ,"To Trade Or Not?: Removing Trading Motivation Eliminates the Endowment Effect", in NA - Advances in Consumer Research Volume 40, eds. Zeynep G├╝rhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 1128-1128.