WTP vs. WTA: Christmas Presents and the Endowment Effect

Thomas Bauer () and Christoph Schmidt

No 3855, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data on the valuation of Christmas gifts received by students in different fields at a German university, we investigate whether the endowment effect differs between students of economics and other respondents and whether it varies with the market price of the object under consideration. Our estimation results suggest that economics students have both, a significant lower WTP and WTA, indicating that existing studies on the efficiency loss of holiday gifts and experimental studies on the endowment effect that rely on data from economics students may be biased. The result further indicates that the endowment effect is independent of the market price of the object.

Keywords: endowment effect; deadweight loss; Christmas presents; loss aversion (search for similar items in EconPapers)
JEL-codes: D01 D49 D61 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2008-11
New Economics Papers: this item is included in nep-cbe, nep-dcm, nep-env and nep-exp
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Published - published in: Jahrbücher für Nationalökonomie und Statistik, 2012, 232 (1), 4 - 11

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Related works:
Journal Article: WTP vs. WTA: Christmas Presents and the Endowment Effect (2012)
Working Paper: WTP vs.WTA: Christmas Presents and the Endowment Effect (2008)
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