Willingness to Accept, Willingness to Pay, and Loss Aversion

Arbeitspapier

We use four incentivized representative surveys to study the endowment effect for lotteries in 4,000 U.S. adults. We replicate the standard finding of an endowment effect–the divergence between Willingness to Accept (WTA) and Willingness to Pay (WTP), but document three new findings. First, we find little evidence that the endowment effect is related to loss aversion for risky prospects, counter to predictions of popular theories in economics. Second, WTA and WTP not only diverge, but are, at best, weakly correlated. Third, WTA and WTP strongly relate to other aspects of risk preferences. The structure of these behaviors points to different theories of the endowment effect.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 10200

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Design of Experiments: General ; Criteria for Decision-Making under Risk and Uncertainty ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
• Thema: Willingness To Pay ; Willingness to Accept ; endowment effect ; loss aversion ; Zahlungsbereitschaftsanalyse ; Risikoaversion ; Glücksspiel ; Besitztumseffekt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Chapman, Jonathan ; Dean, Mark ; Ortoleva, Pietro ; Snowberg, Erik ; Camerer, Colin
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/271844
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ