The role of emotions in the endowment effect

Chien Huang Lin; Shih Chieh Chuang; Danny T. Kao; Chaang Yung Kung

doi:10.1016/j.joep.2005.10.001

The role of emotions in the endowment effect

Chien Huang Lin
, Shih Chieh Chuang
, Danny T. Kao
, Chaang Yung Kung

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

45 Scopus citations

Abstract

This paper argues that the endowment effect - the tendency for minimum selling price to exceed maximum buying price for a particular object - might be minimized when a negative emotion is induced. The findings from two experiments on 400 participants support this hypothesis: the endowment effect only occurs when participants are induced to feel happy, and is absent when people are induced to feel sadness. Thus, the importance of emotional states is highlighted.

Original language	English
Pages (from-to)	589-597
Number of pages	9
Journal	Journal of Economic Psychology
Volume	27
Issue number	4
DOIs	https://doi.org/10.1016/j.joep.2005.10.001
State	Published - Aug 2006

Keywords

Emotion
Endowment effect
Value
Willingness to accept (WTA)
Willingness to pay (WTP)

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10.1016/j.joep.2005.10.001

Cite this

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abstract = "This paper argues that the endowment effect - the tendency for minimum selling price to exceed maximum buying price for a particular object - might be minimized when a negative emotion is induced. The findings from two experiments on 400 participants support this hypothesis: the endowment effect only occurs when participants are induced to feel happy, and is absent when people are induced to feel sadness. Thus, the importance of emotional states is highlighted.",

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AU - Kung, Chaang Yung

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N2 - This paper argues that the endowment effect - the tendency for minimum selling price to exceed maximum buying price for a particular object - might be minimized when a negative emotion is induced. The findings from two experiments on 400 participants support this hypothesis: the endowment effect only occurs when participants are induced to feel happy, and is absent when people are induced to feel sadness. Thus, the importance of emotional states is highlighted.

AB - This paper argues that the endowment effect - the tendency for minimum selling price to exceed maximum buying price for a particular object - might be minimized when a negative emotion is induced. The findings from two experiments on 400 participants support this hypothesis: the endowment effect only occurs when participants are induced to feel happy, and is absent when people are induced to feel sadness. Thus, the importance of emotional states is highlighted.

KW - Emotion

KW - Endowment effect

KW - Value

KW - Willingness to accept (WTA)

KW - Willingness to pay (WTP)

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M3 - 期刊論文

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EP - 597

JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

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ER -

The role of emotions in the endowment effect

Abstract

Keywords

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