Contagious endowment effects across transactions

Published on May 6, 2021in European Journal of Marketing
· DOI :10.1108/EJM-11-2019-0855
Tae-Hyung Pyo2
Estimated H-index: 2
,
JaeHwan Kwon5
Estimated H-index: 5
+ 1 AuthorsDhananjay Nayakankuppam9
Estimated H-index: 9
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Abstract
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A hallmark result within behavioral economics is that individuals' choices are affected by current endowments. A recent theory due to Kőszegi and Rabin (2006, Quarterly Journal of Economics, 121, 1133–1165) explains such endowment effect with a model of expectations-based reference-dependent preferences. Departing from past work, we conduct complementary experiments to disentangle expectations—verified probabilistic beliefs held by subjects—from other features of endowment—such as “assignment” t...
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