UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Endowment effect despite the odds

Walasek, L; Yu, EC; Lagnado, DA; (2018) Endowment effect despite the odds. Thinking & Reasoning , 24 (1) pp. 79-96. 10.1080/13546783.2017.1381163. Green open access

[thumbnail of Walasek_Endowment_effect_despite_odds.pdf]
Preview
Text
Walasek_Endowment_effect_despite_odds.pdf - Accepted version

Download (381kB) | Preview

Abstract

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.

Type: Article
Title: Endowment effect despite the odds
Open access status: An open access version is available from UCL Discovery
DOI: 10.1080/13546783.2017.1381163
Publisher version: https://doi.org/10.1080/13546783.2017.1381163
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Endowment effect, loss aversion, betting, valuation, probability estimation
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences > Div of Psychology and Lang Sciences
UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Brain Sciences > Div of Psychology and Lang Sciences > Experimental Psychology
URI: https://discovery.ucl.ac.uk/id/eprint/10045292
Downloads since deposit
195Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item