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Mispredicting the endowment effect:: Underestimation of owners' selling prices by buyer's agents

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  • Van Boven, Leaf
  • Loewenstein, George
  • Dunning, David
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  • Van Boven, Leaf & Loewenstein, George & Dunning, David, 2003. "Mispredicting the endowment effect:: Underestimation of owners' selling prices by buyer's agents," Journal of Economic Behavior & Organization, Elsevier, vol. 51(3), pages 351-365, July.
    • Handle: RePEc:eee:jeborg:v:51:y:2003:i:3:p:351-365
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    References listed on IDEAS

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    2. Gilbert, Daniel T. & Gill, Michael J. & Wilson, Timothy D., 2002. "The Future Is Now: Temporal Correction in Affective Forecasting," Organizational Behavior and Human Decision Processes, Elsevier, vol. 88(1), pages 430-444, May.
    3. George Loewenstein & Ted O'Donoghue & Matthew Rabin, 2003. "Projection Bias in Predicting Future Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1209-1248.
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    5. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
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    7. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    8. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    9. Kagel, John H. & Levin, Dan, 1986. "The Winner's Curse and Public Information in Common Value Auctions," American Economic Review, American Economic Association, vol. 76(5), pages 894-920, December.
    10. David K. Levine, 1998. "Modeling Altruism and Spitefulness in Experiment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 593-622, July.
    11. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    12. Thaler, Richard, 1980. "Toward a positive theory of consumer choice," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 39-60, March.
    13. David M. Grether & James C. Cox, 1996. "The preference reversal phenomenon: Response mode, markets and incentives (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(3), pages 381-405.
    14. Gibbons, Robert & Boven, Leaf Van, 2001. "Contingent social utility in the prisoners' dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 45(1), pages 1-17, May.
    15. Loewenstein, George, 1996. "Out of Control: Visceral Influences on Behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 65(3), pages 272-292, March.
    16. Camerer, Colin F, 1987. "Do Biases in Probability Judgment Matter in Markets? Experimental Evidence," American Economic Review, American Economic Association, vol. 77(5), pages 981-997, December.
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    Cited by:

    1. Götte, Lorenz & Cerulli-Harms, Annette & Sprenger, Charles, 2014. "Randomizing Endowments: An Experimental Study of Rational Expectations and Reference-Dependent Preferences," IZA Discussion Papers 8639, Institute of Labor Economics (IZA).
    2. Pan, Yinghao & Qin, Yu & Zhang, Fan & Zhu, Hongjia, 2022. "Acquiring land in cold winter: Consequences and possible explanations," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    3. Drichoutis, Andreas C. & Lusk, Jayson L. & Pappa, Valentina, 2016. "Elicitation formats and the WTA/WTP gap: A study of climate neutral foods," Food Policy, Elsevier, vol. 61(C), pages 141-155.
    4. Iris Bohnet & Stephan Meier, 2005. "Deciding to distrust," Public Policy Discussion Paper 05-4, Federal Reserve Bank of Boston.
    5. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson L. & Nayga, Rodolfo M. Jr., 2015. "Reference dependence, consequentiality and social desirability in value elicitation: A study of fair labor labeling," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202705, European Association of Agricultural Economists.
    6. Jayson L. Lusk & F. Bailey Norwood, 2009. "An Inferred Valuation Method," Land Economics, University of Wisconsin Press, vol. 85(3), pages 500-514.
    7. Lucy F. Ackert & Bryan K. Church & Gerald P. Dwyer, 2005. "When the shoe is on the other foot: experimental evidence on evaluation disparities," FRB Atlanta Working Paper 2005-17, Federal Reserve Bank of Atlanta.
    8. Ivo Bischoff, 2008. "Endowment effect theory, prediction bias and publicly provided goods: an experimental study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(3), pages 283-296, March.
    9. Wang Xianghong, 2009. "Retail Return Policy, Endowment Effect, and Consumption Propensity: An Experimental Study," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-29, September.
    10. Kogler, Christoph & Kühberger, Anton & Gilhofer, Rainer, 2013. "Real and hypothetical endowment effects when exchanging lottery tickets: Is regret a better explanation than loss aversion?," Journal of Economic Psychology, Elsevier, vol. 37(C), pages 42-53.
    11. Nathan Canen & Jacob Schwartz & Kyungchul Song, 2020. "Estimating local interactions among many agents who observe their neighbors," Quantitative Economics, Econometric Society, vol. 11(3), pages 917-956, July.
    12. Tristan Gagnon-Bartsch & Antonio Rosato, 2024. "Quality Is in the Eye of the Beholder: Taste Projection in Markets with Observational Learning," American Economic Review, American Economic Association, vol. 114(11), pages 3746-3787, November.
    13. Venkatachalam, L., 2008. "Behavioral economics for environmental policy," Ecological Economics, Elsevier, vol. 67(4), pages 640-645, November.
    14. Min, Shi & Wang, Xiaobing & Liu, Min & Huang, Jikun, 2018. "The asymmetric response of farmers to an expected change in the price of rubber: The roles of sunk costs and path dependency," Land Use Policy, Elsevier, vol. 79(C), pages 585-594.
    15. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson & Nayga, Rodolfo M., 2015. "Fair farming: Preferences for fair labor certification using four elicitation methods," MPRA Paper 62546, University Library of Munich, Germany.
    16. Lucy F. Ackert & Bryan K. Church & Gerald P. Dwyer Jr., 2007. "When the Shoe Is on the Other Foot," Public Finance Review, , vol. 35(2), pages 199-214, March.
    17. Bischoff, Ivo, 2006. "Endowment effect theory and the Samuelson solution – a thought experiment," Finanzwissenschaftliche Arbeitspapiere 76, Justus Liebig University Giessen, Fachbereich Wirtschaftswissenschaften.
    18. Rose, Jason P. & Windschitl, Paul D., 2008. "How egocentrism and optimism change in response to feedback in repeated competitions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(2), pages 201-220, March.
    19. Van Boven, Leaf & Loewenstein, George & Dunning, David, 2005. "The illusion of courage in social predictions: Underestimating the impact of fear of embarrassment on other people," Organizational Behavior and Human Decision Processes, Elsevier, vol. 96(2), pages 130-141, March.
    20. I. Lens & M. Pandelaere & L. Warlop, 2009. "The Role of Materialism in the Endowment Effect," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/578, Ghent University, Faculty of Economics and Business Administration.
    21. Amira Galin, 2013. "Endowment Effect in negotiations: group versus individual decision-making," Theory and Decision, Springer, vol. 75(3), pages 389-401, September.

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