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.