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The endowment effect with different possession times and types of items

Author

Listed:
  • Colucci, Domenico
  • Franco, Chiara
  • Valori, Vincenzo

Abstract

The vast literature dealing with the endowment effect (EE) revolves around untangling the various determinants that may be at work in producing the effect itself. We examine two of these likely determinants that remain under-researched: The first is the effect that the length of possession may have on the EE. The second is the type of good (tangible, intangible or exchange goods) used to test the effect. Using an online questionnaire experiment, we investigate these aspects using three different items – a mug, an Amazon gift card, and a quarterly subscription to Spotify – testing whether the EE occurs when subjects imagine owning the item for different lengths of time. We find that the EE appears clearly for all types of goods, while the results are less clear when considering the duration of possession.

Suggested Citation

  • Colucci, Domenico & Franco, Chiara & Valori, Vincenzo, 2024. "The endowment effect with different possession times and types of items," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
    • Handle: RePEc:eee:soceco:v:110:y:2024:i:c:s2214804324000545
    DOI: 10.1016/j.socec.2024.102216
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    References listed on IDEAS

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    More about this item

    Keywords

    WTA/WTP gap; Endowment effect; Possession experience; Intangible goods; Exchange goods;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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