The endowment effect, status quo bias and loss aversion : rational alternative explanation

Dominique Y. Dupont; Gabriel S. Lee

The endowment effect, status quo bias, and loss aversion are robust and well documented results from experimental psychology. They introduce a wedge between the prices at which one is willing to sell or buy a good. The objective of this paper is to address this wedge. We show that the presence of asymmetric information in a rational-agent framework can account for the endowment effect, status quo bias and loss aversion as well as psychology-based explanations proposed in the past. -- endowment effect ; status quo bias ; loss aversion ; asymmetric information ; bid/ask spread

MoreLess

Year of publication:	2001
Authors:	Dupont, Dominique Y. ; Lee, Gabriel S.
Publisher:	Wien : IHS
Subject:	Zahlungsbereitschaftsanalyse \| Willingness to pay \| Risikoaversion \| Risk aversion \| Rationale Erwartung \| Rational expectations \| Asymmetrische Information \| Asymmetric information \| Theorie \| Theory \| Preistheorie \| Systematischer Fehler

freely available

Full text |

More access options

www.ihs.ac.at

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	Online-Ressource (22 S.) graph. Darst.
Series:	IHS economics series : working paper. - Wien : IHS, ZDB-ID 2537878-8. - Vol. 92
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/71256 [Handle]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; D82 - Asymmetric and Private Information ; G22 - Insurance; Insurance Companies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009724431