NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Salience in Experimental Tests of the Endowment Effect

Pedro Bordalo, Nicola Gennaioli, Andrei Shleifer

NBER Working Paper No. 17761
Issued in January 2012
NBER Program(s):   AP   CF

We provide a novel account of experimental evidence for the endowment effect using the salience mechanism (Bordalo, Gennaioli, and Shleifer, 2011). The two-stage procedure implemented in experiments implies that the endowed good and other goods are evaluated in different contexts. We describe conditions under which the standard effect occurs, but also account for recent evidence such as a reverse endowment effect for bads and a role for reference prices in modulating the WTA-WTP gap.

download in pdf format
   (214 K)

email paper

This paper is available as PDF (214 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17761

Published: Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience in Experimental Tests of the Endowment Effect," American Economic Review, American Economic Association, vol. 102(3), pages 47-52, May. citation courtesy of

Users who downloaded this paper also downloaded these:
Bordalo, Gennaioli, and Shleifer w17947 Salience and Consumer Choice
Bordalo, Gennaioli, and Shleifer w16387 Salience Theory of Choice Under Risk
Heffetz and List w16715 Is the Endowment Effect a Reference Effect?
Bordalo, Gennaioli, and Shleifer w18708 Salience and Asset Prices
Ericson and Fuster w19384 The Endowment Effect
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us