An Experimental test of the endowment effect

Date
2017
Authors
Cohen, Justin Simon
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Journal ISSN
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Abstract
In this study, I use a computer game based lab experiment to investigate the existence of the Endowment Effect. Previous empirical evidence has been criticised for failing to adequately account for the effects of transactions costs and other frictions. The structure of the game used in this study allows me to control for these effects, and the results provide evidence in support of the existence of an Endowment Effect. The effect is found to be stronger when transactions costs are present.
Description
Thesis (M. Com. (Economics))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic & Business Sciences, 2017
Keywords
Endowment Effect, Transactions costs
Citation
Cohen, Justin Simon (2017) An Experimental test of the endowment effect, University of the Witwatersrand, Johannesburg, <https://hdl.handle.net/10539/24406>