The Role of Desires to Trade on Favorable Terms in Producing the Endowment Effect
Standard explanations for the endowment effect emphasize loss aversion and ownership. The current research investigates another possibility: that price discrepancies between owners and non-owners might be influenced by desires to trade on favorable terms. We test this by eliciting valuation in non-trading contexts, where we find the endowment effect disappears.
[ to cite ]:
Laurence Ashworth, Peter Darke, Lindsay McShane, and Tiffany Vu (2015) ,"The Role of Desires to Trade on Favorable Terms in Producing the Endowment Effect", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 455-456.