The Endowment Effect as Self-Enhancement in Response to Threat

Promothesh Chatterjee, Caglar Irmak and Randall L. Rose

Journal of Consumer Research, 2013, vol. 40, issue 3, 460 - 476

Abstract: The discrepancy between willingness to pay (WTP) and willingness to accept (WTA) for a product, referred to as the endowment effect, has been investigated and replicated across various domains because of its implications for rational decision making. The authors assume that implicit processes operate in the endowment effect and propose an explanation that is derived from the two main accounts of the effect, ownership and loss aversion. Based on the implicit egotism and self-affirmation literatures, the model argues that selling is perceived as an implicit self-threat and that sellers, as a part of their automatic defense mechanism, respond to this self-threat by enhancing the value of the self-associated object. Five studies test these conjectures and provide support for the proposed model.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://dx.doi.org/10.1086/671344 (application/pdf)
http://dx.doi.org/10.1086/671344 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jconrs:doi:10.1086/671344

Access Statistics for this article

Journal of Consumer Research is currently edited by Bernd Schmitt, June Cotte, Markus Giesler, Andrew Stephen and Stacy Wood

More articles in Journal of Consumer Research from Journal of Consumer Research Inc.
Bibliographic data for series maintained by ().