TY  - GEN
AU  - Heffetz, Ori
AU  - List, John A.
SN  - 1542-4774
AU  - Heffetz, Ori
AU  - List, John A.
LA  - eng
CN  - ENP-55d04c75-da1b-4c5a-83b3-25b702c910b0
TI  - Is the endowment effect an expectations effect?
PY  - 2014
AB  - A hallmark result within behavioral economics is that individuals' choices are affected by current endowments. A recent theory due to Kőszegi and Rabin (2006, Quarterly Journal of Economics, 121, 1133–1165) explains such endowment effect with a model of expectations-based reference-dependent preferences. Departing from past work, we conduct complementary experiments to disentangle expectations - verified probabilistic beliefs held by subjects - from other features of endowment - such as "assignment" to a good - hence allowing us to compare the effect of expectations with that of other variations. While mere assignment can affect choices, we do not find a large role in the effect for Kőszegi–Rabin expectations.
ER  -