Eliciting the Endowment Effect under Assigned Ownership
General Economics
2018-10-05 v2 Economics
Abstract
In this study we present evidence that endowment effect can be elicited merely by assigned ownership. Using Google Customer Survey, we administered a survey were participants (n=495) were randomly split into 4 groups. Each group was assigned ownership of either legroom or their ability to recline on an airline. Using this experiment setup we were able to generate endowment effect, a 15-20x (at p<0.05) increase between participant's willingness to pay (WTP) and their willingness to accept (WTA).
Cite
@article{arxiv.1809.08500,
title = {Eliciting the Endowment Effect under Assigned Ownership},
author = {Patrick Barranger and Rohit Nair and Rob Mulla and Shane Conner},
journal= {arXiv preprint arXiv:1809.08500},
year = {2018}
}
Comments
14 pages, 12 figures