When Is Life Like a Box of Chocolates?: Providing Multiple Units of a Good Attenuates the Endowment Effect

Previous endowment effect studies have examined situations in which people confront only a single unit of a good (e.g. one chocolate). We contrast single-unit experimental conditions with multiple-unit conditions in which participants confront several units of a good (e.g., five chocolates). We observe standard endowment effects with single units but substantially attenuated endowment effects with multiple units. Importantly, endowment effects arise consistently for single unit conditions – even as the definition of a unit is markedly altered. For instance, participants holding one chocolate show an endowment effect, but so do participants holding one box of (many) chocolates.



Citation:

Katherine Burson, David Faro, and Yuval Rottenstreich (2010) ,"When Is Life Like a Box of Chocolates?: Providing Multiple Units of a Good Attenuates the Endowment Effect", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 494-494 .

Authors

Katherine Burson, University of Michigan, USA
David Faro, London Business School, UK
Yuval Rottenstreich, Stern School of Business, New York University, USA



Volume

NA - Advances in Consumer Research Volume 37 | 2010



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