Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125120
Authors: 
Drouvelis, Michalis
Sonnemans, Joep
Year of Publication: 
2015
Series/Report no.: 
Tinbergen Institute Discussion Paper 15-114/I
Abstract: 
We study experimentally whether the endowment effect survives in a social and strategic context. Participants are asked for their Willingness-to-Accept (WTA) or Willingness-to-Pay (WTP) to play a series of 2x2 games. In the second part of the experiment, we study the endowment effect in lotteries with the same payoffs as the games in the first part. Our findings provide robust evidence for the endowment effect both in games and in lotteries, with the size of the effect actually being larger in games than in lotteries. We also find that the endowment effect can partly be attributed to optimism.
Subjects: 
Experiment
Endowment Effect
2x2 Games
JEL: 
C91
D03
D81
Document Type: 
Working Paper

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