Attenuating Endowment Effect With Venmo: Online Payment Systems Make It a Pleasure to Pay
The endowment effect where sellers ask for higher prices than buyers’ willingness to pay causes market inefficiency. We demonstrate an easy-to-implement market strategy to solve the problem. The use of online payment systems increases buyers’ willingness to pay and thus attenuates endowment effect.
Citation:
Liang Huang and Jennifer Savary (2018) ,"Attenuating Endowment Effect With Venmo: Online Payment Systems Make It a Pleasure to Pay", in NA - Advances in Consumer Research Volume 46, eds. Andrew Gershoff, Robert Kozinets, and Tiffany White, Duluth, MN : Association for Consumer Research, Pages: 600-602.
Authors
Liang Huang, University of Arizona, USA
Jennifer Savary, University of Arizona, USA
Volume
NA - Advances in Consumer Research Volume 46 | 2018
Share Proceeding
Featured papers
See MoreFeatured
‘But Screw the Little People, Right?’ Case of the Commercialization of Reward-Based Crowdfunding
Natalia Drozdova, Norwegian School of Economics and Business Administration, Norway
Featured
Consumer Perceptions of Environmental ‘Win-Wins’
Tamar Makov, Yale University, USA
George Newman, Yale University, USA
Featured
R5. Autonomy or Enjoyment? The Contingent Nature of Brand Ritual
Yaxuan Ran, Zhongnan University of Economics and Law
Echo Wen Wan, University of Hong Kong