An Experimental test of the endowment effect

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Date

2017

Authors

Cohen, Justin Simon

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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>

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