@techreport{Bischoff2006Endowment,
abstract = {Many studies report on a systematic disparity between the willingness to pay for a certain
good (WTP) and the willingness to accept retribution payments in exchange for giving up this
good (WTA). Thaler (1980) employs prospect theory to explain this disparity. The literature
contains two different interpretations of his endowment effect theory. Accordingly, the disparity
is caused either by the disutility from parting with one's endowment and/or by an extra utility
from ownership which is not anticipated by individuals who are not endowed with the good. So
far, the empirical evidence on the applicability of endowment effect theory is limited to private
goods. The current paper reports on an experiment which finds a significant ownership utility
effect for a publicly provided good. This result indicates that prospect theory applies to publicly
provided goods even though consumers do not have exclusive property rights.},
address = {Gie\ss{}en},
author = {Ivo Bischoff},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H40; C92; Q51; H43; 330; endowment effect; loss aversion; publicly provided goods; experiment},
language = {eng},
number = {75},
publisher = {Univ., Fachbereich Wirtschaftswiss.},
title = {Endowment effect theory, prediction bias and publicly provided goods \textendash{} an experimental study},
type = {Finanzwissenschaftliche Arbeitspapiere},
url = {http://hdl.handle.net/10419/22383},
year = {2006}
}
