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Exchange Asymmetry and Charitable Objects

Author

Listed:
  • Luxford, Anthony

    (Monash University)

Abstract

This paper presents results from an online experiment to show whether exchange asymmetry exists with charitable objects; a novelty good not yet used in past experiments. The rationale of this novelty was to excavate the notion of ownership of the goods by reason that charitable objects cannot be kept. These experimental results show exchange asymmetry exists in this novel context, implicating that ownership of the object was not necessary for exchange asymmetry to occur. This supports literature which posits that experimental protocols underpin observed exchange asymmetries in laboratory experiments. This research, therefore, further demarcates a distinguishing line between (1) the increased valuation of an object due to idiosyncratic associations through its ownership over time and (2) an immediately instantiated sense of ownership proclaimed to be the same effect manifesting in laboratory experiments.

Suggested Citation

  • Luxford, Anthony, 2022. "Exchange Asymmetry and Charitable Objects," Warwick-Monash Economics Student Papers 34, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:34
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/34_-_anthony_luxford.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exchange asymmetry ; Charitable objects ; Endowment effect JEL Classification: C91 ; D81 ; D82;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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