An investigation of the endowment effect using a factorial design

The endowment effect is interpreted as evidence that we may 'over value' objects we alreayd own. In this study we introduce a novel approach to investigating the endowment effect, the factorial survey design, which enables manipulation of variables potentially influencing the endowment eff...

Full description

Bibliographic Details
Main Authors: Jefferson, Therese, Taplin, Ross
Format: Journal Article
Published: Elsevier 2011
Online Access:http://hdl.handle.net/20.500.11937/11427
_version_ 1848747802529628160
author Jefferson, Therese
Taplin, Ross
author_facet Jefferson, Therese
Taplin, Ross
author_sort Jefferson, Therese
building Curtin Institutional Repository
collection Online Access
description The endowment effect is interpreted as evidence that we may 'over value' objects we alreayd own. In this study we introduce a novel approach to investigating the endowment effect, the factorial survey design, which enables manipulation of variables potentially influencing the endowment effect. We consider the value and uniqueness of the possession, whether it is a gift from a close friend and whether the trade is with a stranger. We find a higher endowment effect for possessions received as gifts from a close friend and this effect is entirely due to responses from women. Furthermore, we find significantly higher endowment effects for valuable possessions. Our results suggest there is ample scope for broadening the range of methors applied to this area of economic research.
first_indexed 2025-11-14T06:54:56Z
format Journal Article
id curtin-20.500.11937-11427
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T06:54:56Z
publishDate 2011
publisher Elsevier
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-114272019-02-19T04:26:59Z An investigation of the endowment effect using a factorial design Jefferson, Therese Taplin, Ross The endowment effect is interpreted as evidence that we may 'over value' objects we alreayd own. In this study we introduce a novel approach to investigating the endowment effect, the factorial survey design, which enables manipulation of variables potentially influencing the endowment effect. We consider the value and uniqueness of the possession, whether it is a gift from a close friend and whether the trade is with a stranger. We find a higher endowment effect for possessions received as gifts from a close friend and this effect is entirely due to responses from women. Furthermore, we find significantly higher endowment effects for valuable possessions. Our results suggest there is ample scope for broadening the range of methors applied to this area of economic research. 2011 Journal Article http://hdl.handle.net/20.500.11937/11427 10.1016/j.joep.2011.08.004 Elsevier fulltext
spellingShingle Jefferson, Therese
Taplin, Ross
An investigation of the endowment effect using a factorial design
title An investigation of the endowment effect using a factorial design
title_full An investigation of the endowment effect using a factorial design
title_fullStr An investigation of the endowment effect using a factorial design
title_full_unstemmed An investigation of the endowment effect using a factorial design
title_short An investigation of the endowment effect using a factorial design
title_sort investigation of the endowment effect using a factorial design
url http://hdl.handle.net/20.500.11937/11427