The effects of endowment on the demand for probabilistic information

Research shows that individuals are ambiguity averse: they choose unambiguous over equivalent ambiguous prospects and price them higher (either as buyers or sellers). Moreover, it is often assumed that ambiguity averse individuals are willing to pay an ambiguity premium for information that reduces ambiguity [Camerer, C. F., & Weber, M. (1992). Recent developments in modeling preferences: Uncertainty and ambiguity. Journal of Risk and Uncertainty, 5(4), 325–370]. However, when people are asked to exchange an ambiguous alternative in their possession for an equivalent unambiguous one, they prefer to retain the former [Roca, M., Hogarth, R. M., & Maule, A. J. (2006). Ambiguity seeking as a result of the status quo bias. Journal of Risk and Uncertainty, 32(3), 175–194]. We present three experiments investigating the economic effects of endowment on attitudes towards ambiguity and the ambiguity premium. The experiments, based on a [Becker, G., DeGroot, M., & Marschak, J. (1964). Measuring utility by a single-response sequential method. Science, 9, 3] procedure, show that the value attributed to ambiguity reducing information is substantially affected by the status quo of the individual.     

Owning leads to valuing: Meta-analysis of the mere ownership effect

Mere ownership effect is the phenomenon that people tend to value what they own more than what they do not own. This classic effect is considered robust, yet effect sizes vary across studies, and the effect is often confused for or confounded with other classic phenomena, such as endowment or mere exposure effects. We conducted a pre-registered meta-analysis of 26 samples published before 2019 (N = 3024), which resulted in psychological ownership on valuing effect of g ∼ 0.57 [0.46, 0.69]. Suggestive moderator analyses supported the use of replica as the strongest moderators. Mere ownership effects were different from the null across all moderator categories and in most publication bias adjustments. We consider this as suggestive evidence that psychological owning leads to valuing, yet caution that much more research is needed. All materials, data, and codes are available on https://osf.io/fdyqw/ .     

The influence of involvement on the endowment effect: The moveable value function

The endowment effect is based on the loss aversion built into Prospect Theory's asymmetric value function. This paper posits that the level of consumer involvement with a decision is a moderator of the endowment effect. It is proposed that high involvement increases the slope differential between the loss and gain regions of the value function, enhancing loss aversion. The research further posits that higher involvement is accompanied by higher arousal and cognitive processing which produces stronger negativity in thoughts. The argument for these effects is discussed in the context of evolutionary theory. We conclude that consumers are more loss averse in high versus low involvement conditions.     

Endowment effect despite the odds

Can ownership status influence probability judgements under condition of uncertainty? In three experiments, we presented our participants with a recording of a real horse race. We endowed half of our sample with a wager on a single horse to win the race, and the other half with money to spend to acquire the same wager. Across three large studies (N = 750), we found the endowment effect – owners demanded significantly more for the wager than buyers were willing to pay to acquire it. However, we also found that probability estimates of each horse winning the race did not differ between owners and non-owners of the betting slip. Our results demonstrate that distorted perception of probability is unlikely to be a mechanism explaining the endowment effect.     

Context effects: the role of collectivism as a moderator

Social cognition experts have shown that participants' answers to research questions can be influenced by previous questions, something known as context effects. It has been suggested that participants from collectivist cultures pay more attention to the context, resulting in larger context effects. The present investigation examined context effects in an experiment that involved manipulating the order in which two questions, one about satisfaction with life as a whole and one about satisfaction with romantic life, were answered by a representative sample of participants from Mexico City. The results were consistent with other investigations that used samples from collectivistic cultures. Participants' responses to questions about satisfaction are influenced by a previous question, and country of origin affects the amount of attention given to the context. The implications of these results are discussed.     

Possession attachment: Individual differences in the endowment effect

The endowment effect suggests that people become attached to objects that are in their possession, and they demand a higher price to sell an object they own than they would be willing to pay to buy the same object. The results of four experiments support the suggestion that “possession attachment” is related to adult attachment styles in close relationships. Measures of attachment style in close relationships significantly predicted both actual and hypothetical selling prices moderating the endowment effect (Study 1), and significantly correlate with ratings of possession attachment (Study 2). Specifically, attachment anxiety is positively correlated with the selling prices of objects, while attachment avoidance shows no significant relation with object evaluation. The third and fourth experimental studies further demonstrated that attachment anxiety enhances possession evaluation and inhibits trades. The studies used real commodities and real money, and therefore, they have implications for everyday decisions as well as for the development of theories to better understand decisions about trades, negotiations, and choice of goods. Copyright © 2010 John Wiley & Sons, Ltd.     

Mastery pleasure versus mere ownership: A quasi-experimental cross-cultural and cross-alphabetical test of the name letter effect

Four studies test both the alternative explanation advanced by Hoorens and Todorova (1988) for Nuttin's (1984, 1985, 1987) name letter effect (NLE), and two interpretations for an unexplained finding of the former authors. Flemish, Hungarian and Thai children show an increasing rather than a decreasing NLE over primary school grades (studies 1, 2 and 4). Thai university students and school children prefer own name letters in their ‘mother’ alphabet (Thai) but also in their second (Roman) alphabet (studies 3 and 4). All these results contradict the primacy of own name writing or mastery pleasure hypothesis. Independently of the time interval between the acquisition of both alphabets, a stronger NLE is found in the subjects ‘mother’ alphabet than in their second alphabet, contradicting a mitigated mastery pleasure explanation for the stronger NLE in one's ‘mother’ alphabet (Hoorens and Todorova, 1988). All the data are consistent with Nuttin's interpretation of the NLE in terms of the affective consequences of ‘mere ownership’. Finally, the striking generality of the NLE over languages, alphabets, and cultures is again demonstrated.     

Fluency and positivity as possible causes of the truth effect

Statements’ rated truth increases when people encounter them repeatedly. Processing fluency is a central variable to explain this truth effect. However, people experience processing fluency positively, and these positive experiences might cause the truth effect. Three studies investigated positivity and fluency influences on the truth effect. Study 1 found correlations between elicited positive feelings and rated truth. Study 2 replicated the repetition-based truth effect, but positivity did not influence the effect. Study 3 conveyed positive and negative correlations between positivity and truth in a learning phase. We again replicated the truth effect, but positivity only influenced judgments for easy statements in the learning phase. Thus, across three studies, we found positivity effects on rated truth, but not on the repetition-based truth effect: We conclude that positivity does not explain the standard truth effect, but the role of positive experiences for truth judgments deserves further investigation.     

Role of social value orientation in the endowment effect

The purpose of the present research was to explore the role of social value orientation in the endowment effect. The study gathered 190 participants from university students in Taiwan: 74 of these were classified as individualists, 44 as competitors and 56 as prosocials, with 16 being unclassified. Results from an experimental study indicated that the individualists' and competitors' average selling prices were significantly higher than the average buying prices for a commodity; thus the endowment effect was observed in these two orientations. The endowment effect was not observed in those having a prosocial orientation, however.     

源于“反常”终于“常理”的禀赋效应

如果忽略收入影响和交易成本, 愿意为一样物品支付的价格应等于愿意出售的价格。而塞勒教授却发现, 现实生活中有一些“反常”现象, 个体会对自己所拥有的物品赋予更高的价值, 造成“愿意支付价格”和“愿意出售价格”的不一致。塞勒利用预期理论中的损失厌恶对这些反常现象进行解释, 并将该现象称为禀赋效应(endowment effect)。此后, 众多研究者从不同角度对该效应进行了探索和论证。文章详细梳理了禀赋效应的多种解释机制, 包括损失厌恶、心理所有权理论、偏差的认知过程以及进化的观点等, 论证了禀赋效应符合“常理”的原因, 同时也探讨了禀赋效应在商业销售策略和政府拆迁政策等方面的应用前景。     

Sex-role identity as a moderator of the polarization effect in person perception

Male and female subjects with different sex-role identities (Androgynous, Masculine, Feminine, Undifferentiated) rated likability of male and female stimulus persons in the impression formation paradigm. Under certain conditions all the female subjects and feminine males manifested a polarization effect; that is, they made more polar ratings of opposite-sexed stimulus persons in contrast to same-sexed stimulus persons. On the other hand, under certain conditions Masculinetyped males rated male stimulus persons more negatively than female stimulus persons. Results were discussed in terms of moderating effects on the polarization phenomenon and possible explanatory mechanisms.     

The impact of locus of control and priming on the endowment effect

This paper demonstrates the effects of different priming conditions on the endowment effect with respect to seller and buyer roles for individuals with different loci of control. Individuals with an external locus of control process information less rationally, and they are more susceptible to external influences. In addition, the literature reports that when individuals are making a purchasing decision, they tend to perceive the value of the product as being higher because of its utility aspect because decision makers search for reasons and arguments to justify their choices (Shafir 1993; Tversky & Griffin, 1991). Therefore, this study investigates the effects of different priming conditions (utilitarian priming vs. hedonic priming) on the endowment effect according to each type of locus of control (internal vs. external). The results showed that the endowment effect was larger when externals were exposed to utilitarian priming as opposed to hedonic priming. Finally, the implications of these findings and suggestions for future research are discussed.     

Mindfulness as a moderator of the effect of implicit motivational self-concept on day-to-day behavioral motivation

Drawing from theories regarding the role of awareness in behavioral self-regulation, this research was designed to examine the role of mindfulness as a moderator between implicit motivation and the motivation for day-to-day behavior. We hypothesized that dispositional mindfulness (Brown and Ryan, J Pers Soc Psychol, 84, 822–848, 2003) would act to modify the expression of implicit autonomy orientation in daily behavioral motivation. Using the Implicit Association Test (Greenwald et al. J Pers Soc Psychol, 74, 1464–1480, 1998), Study 1 provided evidence for the reliability and validity of a new measure of implicit autonomy orientation. Using an experience-sampling strategy, Study 2 showed the hypothesized moderating effect, such that implicit autonomy orientation predicted day-to-day motivation only for those lower in dispositional mindfulness. Those higher in mindfulness showed more autonomously motivated behavior regardless of implicit orientation toward autonomy or heteronomy. It also showed that this moderating effect of awareness was specific to mindfulness and was primarily manifest in spontaneous behavior. Discussion focuses on the implications of these findings for dual process theory and research.

Temporal fluctuations in driving demand: The effect of traffic complexity on subjective measures of workload and driving performance

Traffic density has been shown to be a factor of traffic complexity which influences driver workload. However, little research has systematically varied and examined how traffic density affects workload in dynamic traffic conditions. In this driving simulator study, the effects of two dynamically changing traffic complexity factors (Traffic Flow and Lane Change Presence) on workload were examined. These fluctuations in driving demand were then captured using a continuous subjective rating method and driving performance measures. The results indicate a linear upward trend in driver workload with increasing traffic flow, up to moderate traffic flow levels. The analysis also showed that driver workload increased when a lane change occurred in the drivers’ forward field of view, with further increases in workload when that lane change occurred in close proximity. Both of these main effects were captured via subjective assessment and with driving performance parameters such as speed variation, mean time headway and variation in lateral position. Understanding how these traffic behaviours dynamically influence driver workload is beneficial in estimating and managing driver workload. The present study suggests possible ways of defining the level of workload associated with surrounding traffic complexity, which could help contribute to the design of an adaptive workload estimator.     

Biased information search in homogeneous groups: confidence as a moderator for the effect of anticipated task requirements

When searching for information, groups that are homogeneous regarding their members' prediscussion decision preferences show a strong bias for information that supports rather than conflicts with the prevailing opinion (confirmation bias). The present research examined whether homogeneous groups blindly search for information confirming their beliefs irrespective of the anticipated task or whether they are sensitive to the usefulness of new information for this forthcoming task. Results of three experiments show that task sensitivity depends on the groups' confidence in the correctness of their decision: Moderately confident groups displayed a strong confirmation bias when they anticipated having to give reasons for their decision but showed a balanced information search or even a dis confirmation bias (i.e., predominately seeking conflicting information) when they anticipated having to refute counterarguments. In contrast, highly confident groups demonstrated a strong confirmation bias independent of the anticipated task requirements.     

The extensibility of the endowment effect to others is mediated by degree of intimacy

Recent studies have suggested that the endowment effect may actually be a type of self‐referent cognitive bias due to the mere ownership of an object. However, it is not adequately understood how the ownership of an object affects the endowment effect. The current research is the first to explore if the endowment effect could be extended to different ownerships. The results suggest that the endowment effect extends to goods owned by their mothers, romantic partners and close friends, but not acquaintances. Furthermore, the level of intimacy between individuals and mothers/romantic partners/close friends/acquaintances mediates the relationship between the effect of ownership and the extensibility of the endowment effect. These findings are consistent with the mere ownership effect that ownership increases valuation by enhancing the salience of the self.     

The mere exposure effect for consumer products as a consequence of existing familiarity and controlled exposure

The finding that repeated exposure to a stimulus enhances attitudes directed towards it is a well-established phenomenon. Despite this, the effects of exposure to products are difficult to determine given that they could have previously been exposed to participants any number of times. Furthermore, factors other than simple repeated exposure can influence affective evaluations for stimuli that are meaningful. In our first study, we examined the influence of existing familiarity with common objects and showed that the attractiveness of shapes representing common objects increases with their rated commonness. In our second study, we eliminated the effects of prior exposure by creating fictitious yet plausible products; thus, exposure frequency was under complete experimental control. We also manipulated the attention to be drawn to the products' designs by placing them in contexts where their visual appearance was stressed to be important versus contexts in which it was indicated that little attention had been paid to their design. Following mere exposure, attractiveness ratings increased linearly with exposure frequency, with the slope of the function being steeper for stimuli presented in an inconspicuous context—indicating that individuals engage in more deliberate processing of the stimuli when attention is drawn to their visual appearance.     

Self-referential memory in autism spectrum disorder and typical development: Exploring the ownership effect

Owned objects occupy a privileged cognitive processing status and are viewed almost as extensions of the self. It has been demonstrated that items over which a sense of ownership is felt will be better remembered than other items (an example of the “self-reference effect”). As autism spectrum disorder (ASD) is characterised by an a typical self-concept, people with ASD may not demonstrate this “ownership effect”. Two experiments were conducted which replicate and extend Cunningham, Turk, MacDonald, and Macrae (2008). In Experiment 1, neurotypical adults completed a card sorting task and cards belonging to the ‘self’ were better remembered than cards belonging to another person. In Experiment 2, adults with ASD recalled self- and other owned items equally well. These results shed light both on the relation between sense of self and the ownership effect, and the nature of the self-concept in ASD.     

The possessive self as a barrier to conflict resolution: effects of mere ownership, process accountability, and self-concept clarity on competitive cognitions and behavior

The authors propose that people have difficulty managing conflict because they quickly develop ownership of arguments and positions they use in the dispute, that these arguments and positions become part of their (extended) self-concept, and that any opposition or counterargumentation therefore becomes an ego-threat. Four studies reveal that individuals value arguments and beliefs more when these are associated with the self and that anticipated or real opposition triggers ego-defensive cognition and behavior, including competitive communication, retaliatory responses, negative perceptions of the partner, and attitude polarization. These effects were weaker when epistemic needs were raised through process accountability or when individuals had high rather than low self-concept clarity. The authors conclude that because people develop ownership of arguments and make these part of their self-concept, conflict is difficult to manage and bound to escalate.