The Endowment Effect: Rose-Tinted and Dark-Tinted Glasses

Dhananjay Nayakankuppam and Himanshu Mishra

Journal of Consumer Research, 2005, vol. 32, issue 3, 390-395

Abstract: The endowment effect, predicted by prospect theory, is a robust finding in behavioral decision theory. Extending recent examinations of the underlying processes, we present evidence for differential perceptions of the traded item, with sellers focusing more on positive features and less on negative features, relative to buyers. In experiment 1, sellers and buyers access information of differing valence in a free recall task. Experiment 2 utilizes error rates and response latencies to demonstrate systematic, and differing, patterns of errors and biases in reactions to valenced stimuli. Experiment 3 utilizes contrast effects to manipulate these foci, thereby moderating the endowment effect. (c) 2005 by JOURNAL OF CONSUMER RESEARCH, Inc..

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://dx.doi.org/10.1086/497550 link to full text (text/html)
Access to full text is restricted to subscribers.

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:v:32:y:2005:i:3:p:390-395

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 ().