On reducing an empathy gap: the impact of self-construal and order of judgment

Empathy gaps, in which individuals exaggerate self-other similarities or differences, generate errors in social judgments. We investigated whether changing individuals' self-construal may reduce one specific empathy gap: the illusion of courage. Participants primed with independent or interdependent self-construal made judgments about their own and other people's willingness to dance in public. Participants in the interdependence condition showed a reduction of the empathy gap, but only when judging the other first. This finding highlights that simple contextual manipulations have the potential to reduce egocentric biases in social judgments.     

Bad riddance or good rubbish? Ownership and not loss aversion causes the endowment effect

People typically demand more to relinquish the goods they own than they would be willing to pay to acquire those goods if they did not already own them (the endowment effect). The standard economic explanation of this phenomenon is that people expect the pain of relinquishing a good to be greater than the pleasure of acquiring it (the loss aversion account). The standard psychological explanation is that people are reluctant to relinquish the goods they own simply because they associate those goods with themselves and not because they expect relinquishing them to be especially painful (the ownership account). Because sellers are usually owners, loss aversion and ownership have been confounded in previous studies of the endowment effect. In two experiments that deconfounded them, ownership produced an endowment effect but loss aversion did not. In Experiment 1, buyers were willing to pay just as much for a coffee mug as sellers demanded if the buyers already happened to own an identical mug. In Experiment 2, buyers’ brokers and sellers’ brokers agreed on the price of a mug, but both brokers traded at higher prices when they happened to own mugs that were identical to the ones they were trading. In short, the endowment effect disappeared when buyers were owners and when sellers were not, suggesting that ownership and not loss aversion causes the endowment effect in the standard experimental paradigm.     

引入中立方参照：对禀赋效应的再探讨

在以往禀赋效应研究的基础上, 本研究引入中立方估价值作为参照, 在时间维度上探讨了禀赋效应的变化趋势, 并尝试延伸禀赋效应的定义。研究发现, 随着卖方拥有物品的时间延长, 买卖双方的估价呈下降趋势, 卖方的估价总是显著高于买方, 但买卖双方的估价之差不随卖方拥有物品的时间延长发生变化; 以中立方的估价为参照, 在较短的时间内卖方的估价倾向于理性, 在较长的时间内买方的估价倾向于理性; 卖方的估价在时间水平上相对于中立价格呈递增性, 而买方的估价相对于中立价格呈递减性。引入中立方再探讨禀赋效应并没有否定它的存在, 而且能够更好地解释生活中的非理性行为。     

Beyond mere ownership: transaction demand as a moderator of the endowment effect

Transaction demand refers to the motivation to complete a transaction. As transaction demand increases, owners should sell at lower prices and buyers should buy at higher ones. It was predicted that the endowment effect—the tendency for minimum selling price to exceed maximum buying price for a particular commodity—should be minimized when buyers and sellers have high transaction demand. The results of two experiments supported this hypothesis: In Experiment 1, the endowment effect was observed when participants imagined another individual wanting to buy from or sell to them, but not when they imagined wanting to buy from or sell to another individual. In Experiment 2, a reversal of the endowment effect was observed when transaction demand was high for both prospective buyers and sellers. The findings highlight the importance of motivational factors in addition to other factors (e.g., loss aversion, reference dependence) in determining behavior.     

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.     

Ownership Status and the Representation of Assets of Uncertain Value: The Balloon Endowment Risk Task (BERT)

Owners tend to overvalue possessions relative to non‐owners: a phenomenon known as the endowment effect. In three experiments, using markets for goods of uncertain value, we investigated whether this can be partly attributed to misperceiving an asset's profitability or to uncertainty about a good's utility. To test our hypotheses, we devised the Balloon Endowment Risk Task, in which participants can sell or buy their right to participate in the Balloon Analogue Risk Task. Once purchased/retained, a virtual balloon is pumped to accrue money, which is lost if the balloon bursts. Participants first learn about the risky asset (balloon) by observing others playing the Balloon Analogue Risk Task before they enter the market. In Experiment 1, we replicated the endowment effect; yet, owners and non‐owners predicted pumping the same number of times and subsequently did so when given that opportunity. In Experiments 2 and 3, the level of uncertainty about the balloon's profitability was manipulated by modifying the number of bursts that participants viewed in the initial learning stage. When more diagnostic information was provided, making the average burst point easier to estimate and reducing value uncertainty and increasing confidence in valuation, the endowment effect diminished although mean estimates of the average burst point did not differ between owners and non‐owners. Thus, endowment effects were partly attributable to value uncertainty but could not be explained by owners and non‐owners having divergent perceptions of the asset's payoff distribution. Copyright © 2014 John Wiley & Sons, Ltd.     

Making Decisions in Foreign Languages: Weaker Senses of Ownership Attenuate the Endowment Effect

Although the number of bilingual consumers is expanding, research on the impact of language on consumer decision making is scarce. The current research examines the endowment effect, which is a fundamental consumer decision‐making regularity, under native versus foreign language processing. I show that the endowment effect, which refers to higher valuation of a given product by sellers than buyers, is attenuated when sellers and buyers process information in a foreign language due to a decrease in sellers’ valuation of the product. I further document empirical evidence for the underlying mechanism of this finding. Thinking in a foreign language diminishes the impact of affective reactions on sellers’ judgment, which results in lowered sense of psychological ownership. This lowered sense of psychological ownership significantly decreases sellers’ valuation to a level comparable to the valuation of buyers. The implications of these results for theory and practice, and avenues for future research are discussed.     

For whom is parting with possessions more painful? Cultural differences in the endowment effect

The endowment effect--the tendency for owners (potential sellers) to value objects more than potential buyers do--is among the most widely studied judgment and decision-making phenomena. However, the current research is the first to explore whether the effect varies across cultures. Given previously demonstrated cultural differences in self-construals and self-enhancement, we predicted a smaller endowment effect for East Asians compared with Westerners. Two studies involving buyers and sellers of a coffee mug (Study 1a) and a box of chocolates (Study 1b) supported this prediction. Study 2 conceptually replicated this cultural difference by experimentally manipulating independent and interdependent self-construals. Finally, Study 3 provided evidence for an underlying self-enhancement mechanism: Cultural differences emerged when self-object associations were made salient, but disappeared when self-object associations were minimized. Thus, the endowment effect may be influenced by the degree to which independence and self-enhancement (vs. interdependence and self-criticism) are culturally valued or normative.     

Time pressure and the endowment effect

This research examines how time pressure influences bidding behavior in experiment auctions. The studies reported herein investigate how time pressure systematically impacts individual trading of an endowed object by looking at the disparity between buying and selling prices for that object. Study 1 tests whether the effect of time pressure eliminates the disparity between selling and buying prices. In Study 2, transaction demand is employed to see whether sellers and buyers are more sensitive to changes in the item (amount of work). In Study 3, sellers and buyers access information of differing valence in the task. In Study 4, the framing of the reference price is manipulated to moderate the endowment effect. These studies indicate that under time pressure, endowment bias is reduced and, more generally, elucidate the role of trading behavior in decision making.     

Constructing preference from experience: the endowment effect reflected in external information search

People often attach a higher value to an object when they own it (i.e., as seller) compared with when they do not own it (i.e., as buyer)--a phenomenon known as the endowment effect. According to recent cognitive process accounts of the endowment effect, the effect is due to differences between sellers and buyers in information search. Whereas previous investigations have focused on search order and internal search processes (i.e., in memory), we used a sampling paradigm to examine differences in search termination in external search. We asked participants to indicate selling and buying prices for monetary lotteries in a within-subject design. In an experience condition, participants had to learn about the possible outcomes and probabilities of the lotteries by experiential sampling. As hypothesized, sellers tended to terminate search after sampling high outcomes, whereas buyers tended to terminate search after sampling low outcomes. These differences in stopping behavior translated into samples of the lotteries that were differentially distorted for sellers and buyers; the amount of the distortion was predictive of the resulting size of the endowment effect. In addition, for sellers search was more extended when high outcomes were rare compared with when low outcomes were rare. Our results add to the increasing evidence that the endowment effect is due, in part, to differences in predecisional information search.     

Attention to behavioral events during interaction: two actor-observer gaps and three attempts to close them

In social interactions, people must pay attention to many behavioral events unfolding in themselves and the other person-events that can be observable or unobservable, intentional or unintentional. Three studies explored how people distribute their attention to these different event types and, as a result, build up representations of self and partner during the interaction. Relying on basic principles of attention, the authors predicted 2 actor-observer gaps: Actors pay more attention to unobservable events and less to observable events than do observers, and actors pay more attention to unintentional events and less to intentional events than do observers. Study 1 documents both gaps. Studies 2 and 3 explore factors that might close the gaps, such as relational intimacy and empathy. Implications of these results for the role of attention in attribution and interpersonal behavior are discussed.     

Mere exposure and the endowment effect on consumer decision making

Previous researchers (e.g., J. A. Bargh, 1992, 2002) demonstrated the importance of nonconscious processes on consumer choice behavior. Using an advertisement, the authors determined the effect of two nonconscious processes--the mere exposure effect, which increases object preference by increasing consumer exposure to an object, and the endowment effect, which increases object valuation by providing consumer possession of an object--on consumer behavior. Although the mere exposure effect and endowment effect did not produce an interaction, they produced independent effects. The endowment effect increased object valuation but not object preference. The mere exposure effect increased object preference but not object valuation. Thus, at the unconscious level, an increase in object preference does not lead to an increase in object valuation, nor does an increase in object valuation lead to an increase in object preference. The authors discuss the importance of developing measures of unconscious process in advertising effectiveness.     

Reasoning about other people's beliefs: bilinguals have an advantage

Bilingualism can have widespread cognitive effects. In this article we investigate whether bilingualism might have an effect on adults' abilities to reason about other people's beliefs. In particular, we tested whether bilingual adults might have an advantage over monolingual adults in false-belief reasoning analogous to the advantage that has been observed with bilingual children. Using a traditional false-belief task coupled with an eye-tracking technique, we found that adults in general suffer interference from their own perspective when reasoning about other people's beliefs. However, bilinguals are reliably less susceptible to this egocentric bias than are monolinguals. Moreover, performance on the false-belief task significantly correlated with performance on an executive control task. We argue that bilinguals' early sociolinguistic sensitivity and enhanced executive control may account for their advantage in false-belief reasoning.     

Power and perspectives not taken

Four experiments and a correlational study explored the relationship between power and perspective taking. In Experiment 1, participants primed with high power were more likely than those primed with low power to draw an E on their forehead in a self-oriented direction, demonstrating less of an inclination to spontaneously adopt another person's visual perspective. In Experiments 2a and 2b, high-power participants were less likely than low-power participants to take into account that other people did not possess their privileged knowledge, a result suggesting that power leads individuals to anchor too heavily on their own vantage point, insufficiently adjusting to others' perspectives. In Experiment 3, high-power participants were less accurate than control participants in determining other people's emotion expressions; these results suggest a power-induced impediment to experiencing empathy. An additional study found a negative relationship between individual difference measures of power and perspective taking. Across these studies, power was associated with a reduced tendency to comprehend how other people see, think, and feel.     

My Mug Is Valuable,But My Partner's Is Even More So: Economic Decisions for Close Others

In three experiments, we investigated how people make economic decisions for close others. Participants performed an imaginary valuation task for objects of theirs, a close other, and a stranger. Replicating the endowment effect, people valued their objects more than a stranger's. Of interest, participants valued a close other's objects more than their own. Further experiments showed that the inflated values for a close other's objects were not due to social desirability or task demands. These results convey the importance of considering for whom an economic decision is being made, as people respond differently for themselves, close others, and strangers.     

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.     

Wanting,having, and satisfaction: examining the role of desire discrepancies in satisfaction with income

In 3 studies, the authors tested the predictors of income satisfaction, examining whether discrepanc between the things people have and the things they desire predict satisfaction. Study 1 manipulated the desirability of items that can be purchased with participants' income, and showed that their satisfaction with that income depended on the desirability of these items. Study 2 demonstrated that whether people's income enabled them to purchase the things they desired influenced their satisfaction with income. Study 3 found that the effect of comparisons with a person's past on income satisfaction is completely mediated by one's desires; and the effect of social comparison on income satisfaction is partially mediated by desires. Thus, desires play a pivotal role in determining people's satisfaction with income.     

禀赋效应对产品更换决策的影响

以禀赋效应理论为研究基础, 通过两个情景实验对产品更换过程中买卖双方的决策心理进行了研究。实验1表明, 在以旧换新活动中新产品的买方对旧产品的价格有高估的倾向, 对新产品的价格有低估的倾向; 相反, 新产品的卖方对旧产品的价格有低估的倾向, 而对于新产品的价格有高估的倾向, 这说明产品更换决策中存在着双重的禀赋效应。实验2表明, 新产品的买方对旧产品的属性评价显著高于新产品的卖方, 对新产品的属性评价显著低于新产品的卖方, 说明属性评价也存在禀赋效应的特征。双重禀赋效应的存在从消费者行为的角度解释了为什么消费者会出现创新抵制行为。     

When Does Construction Enhance Product Value? Investigating the Combined Effects of Object Assembly and Ownership on Valuation

Recent findings have shown that even without the ability to customize a product, individuals pay more for goods that they assembled. In this paper we examine which components of this creation process account for the increase in valuation, and whether it operates equally for owners and non‐owners of the self‐assembled object. Based on the self‐extension theory of ownership, we propose a psychological mechanism by which the assembly process strengthens the self–object association. In three experiments, we find that—although witnessing the assembly process or assembling a similar product can increase participants' evaluation of, and attachment to, a product that they own—a greater and more consistent increase in valuation and attachment arises when owners assemble their product themselves. Seemingly, merely learning about the assembly process plays only a small role in enhancing value; for substantial increases in value, one must actually assemble the product oneself. Contrary to the previous findings on the effects of labour on willingness to pay, we find little effect of product assembly among non‐owners of the product. We suggest that self‐assembly encourages objects to be incorporated into the self, but that this occurs most effectively when one owns the product. Copyright © 2015 John Wiley & Sons, Ltd.     

Social projection of transient drive states

The authors hypothesized that people's predictions of how other people feel in emotionally arousing situations are often based on people's predictions of how they themselves would feel in those situations. Indeed, most participants in Study 1 reported predicting hungry hikers' feelings by mentally trading places with them, imagining what their own feelings would be in the hikers' situation. Because people's predictions of their own feelings tend to be biased in the direction of their current drive states, we hypothesized that mentally trading places would lead to social projection of transient drive states. In Study 2, participants' predictions of whether thirst or hunger would be more bothersome to hikers lost without food or water were biased in the direction of participants' own exercise-induced thirst. Furthermore, participants' predictions of how they would feel in the hikers' situation statistically mediated the effect of exercise on their predictions of the hikers' feelings.