The Endowment Effect and Self-Determination as Drivers of Co-Creation Online

Julia Puaschunder ()

RAIS Conference Proceedings 2022-2024 from Research Association for Interdisciplinary Studies

Abstract: One of the most studied behavioral economics effects is the endowment effect. If people are asked to pay for a normal good (e.g., like a mug or pen), the price they offer tends to be lower than if they are given the same good and asked for what price they are willing to sell the good. The endowment effect is believed to stem from the value imbued in possession and the expectation to hold onto the possession once a good is acquired. The psychological effect of self-determination on the motivation of people has been studied in psychology for a long time. Self-determined decisions hold positive advantages of people getting a positive boost from their own volition. Self-determined people tend to follow with through their plans and work longer and better on tasks than those who just fulfill externally-imposed goals. The endowment effect and self-determined decisions may underlie the fascination of co-creation online. Online luxury worlds have been booming in the last decade. Virtual co-creation in homepages, blogs, social online media and video self-streaming platforms has created a new source of social and monetary value as never before in the history of humankind. Social online media influencers are now one of the most prominent career choices in the upcoming generation. This paper attempts to connect the endowment effect with self-determined co-creation online effects, which appears to take the economy over by storm. The paper offers a first glimpse of the new phenomenon. Human rights online and ethical predicament in internet markets will be discussed, as well as future research avenues on the topic.

Keywords: Co-creation online; Economics; Endowment Effect; Law & Economics; Luxury; Online; Self-determined Decisions; Virtual Markets (search for similar items in EconPapers)
Pages: 5 pages
Date: 2023-11
New Economics Papers: this item is included in nep-cbe and nep-pay
References: View references in EconPapers View complete reference list from CitEc
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Published in Proceedings of the 34th International RAIS Conference on Social Sciences and Humanities, November 16-17, 2023, pages 12-17

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