Money is no object: Testing the endowment effect in exchange goods

Daniel Svirsky

Journal of Economic Behavior & Organization, 2014, vol. 106, issue C, 227-234

Abstract: We present a new experimental design to test whether the endowment effect exists for exchange goods, like money. We compare three groups to a baseline: one endowed with money, one endowed with chocolate coins, and one endowed with chocolate coins described as “tokens.” We find an endowment effect for chocolate coins, but no endowment effect for money or for chocolate coins when they are described as tokens. The results suggest that the endowment effect does not exist for exchange goods.

Keywords: Endowment effect; Loss aversion; Exchange goods; Willingness to pay; Willingness to accept (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:106:y:2014:i:c:p:227-234

DOI: 10.1016/j.jebo.2014.07.003

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