The endowment effect: Loss aversion or a buy-sell discrepancy?

• Published in: Journal of experimental psychology. General Vol. 150; no. 9; p. 1890
• Main Authors: Smitizsky, Gal, Liu, Wendy, Gneezy, Uri
• Format: Journal Article
• Language: English
• Published: United States 01.09.2021
• Subjects: Affect; Financial Management; Humans

In a typical endowment effect experiment, individuals state a higher willingness-to-accept to sell an object than a willingness-to-pay to obtain the object. The leading explanation for the endowment effect is loss aversion for the object. An alternative explanation is based on a buy-sell discrepancy...