Arbeitspapier
Learning to Like What You Have: Explaining the Endowment Effect
The endowment effect describes the fact that people demand much more to give up an object than they are willing to spend to acquire it. The existence of this effect has been documented in numerous experiments. We attempt to explain this effect by showing that evolution favors individuals whose preferences embody an endowment effect. The reason is that an endowment effect improves one's bargaining position in bilateral trades. We show that for a general class of evolutionary processes strictly positive endowment effects will survive in the long run.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bonn Econ Discussion Papers ; No. 5/2003
- Classification
-
Wirtschaft
Game Theory and Bargaining Theory: Other
Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
Microeconomics: General
- Subject
-
endowment effect
evolution
bargaining
Verhandlungen
Willingness to pay
Evolutionsökonomik
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Huck, Steffen
Kirchsteiger, Georg
Oechssler, Jörg
- Event
-
Veröffentlichung
- (who)
-
University of Bonn, Bonn Graduate School of Economics (BGSE)
- (where)
-
Bonn
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Huck, Steffen
- Kirchsteiger, Georg
- Oechssler, Jörg
- University of Bonn, Bonn Graduate School of Economics (BGSE)
Time of origin
- 2003
Other Objects (12)
Learning to like what you have: Explaining the endowment effect
What Behavioural Economics must learn from the coronavirus crisis
Von Seerosen, dem Coronavirus und guten Entscheidungen
Matching donations without crowding out? Some theoretical considerations and a field experiment
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Von Seerosen, dem Coronavirus und guten Entscheidungen
Crop Failures and Export Tariffs
Crop failures and export tariffs
Markets for leaked information
Kill or Pay the Bill: Vol. 3
Who knows it is a game? On strategic awareness and cognitive ability
Learning to like what you have: Explaining the endowment effect
What Behavioural Economics must learn from the coronavirus crisis
Von Seerosen, dem Coronavirus und guten Entscheidungen
Matching donations without crowding out? Some theoretical considerations and a field experiment
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Von Seerosen, dem Coronavirus und guten Entscheidungen
Crop Failures and Export Tariffs
Crop failures and export tariffs
Markets for leaked information
Kill or Pay the Bill: Vol. 3
Who knows it is a game? On strategic awareness and cognitive ability
Learning to like what you have: Explaining the endowment effect
What Behavioural Economics must learn from the coronavirus crisis
Von Seerosen, dem Coronavirus und guten Entscheidungen
Matching donations without crowding out? Some theoretical considerations and a field experiment
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Auch die Verhaltensökonomie muss aus der Corona-Krise lernen
Von Seerosen, dem Coronavirus und guten Entscheidungen
Crop Failures and Export Tariffs
Crop failures and export tariffs
Markets for leaked information
Kill or Pay the Bill: Vol. 3