Trading wine: on the endowment effect, loss aversion, and the comparability of consumer goods

Article Abstract:

Traders are more prone to be affected by the endowment effect when the to be traded goods are dissimilar. Traders, specifically wine traders, tend to be more loss aversive when the items they are trading are less similar. The comparability of the gains and losses in trades may be a significant concept in understanding the willingness to trade to predict the presence of endowment effect among traders. Traders tend to be more loss aversive in trading if the trade has more incomparable gains and losses.

Administration of General Economic Programs, Wines, brandy, and brandy spirits, Wineries, Wine, Trade Negotiations, Economic aspects

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Buying and selling exchange goods: loss aversion and the endowment effect

Article Abstract:

An experimental market is used to examine the possibility that exchange goods may be susceptible to the endowment effect. Findings indicate that the endowment effect may be observed in exchange goods in the event that traders are uncertain about future exchange prices. This is considered as an indication of loss aversion due to the difficulty of computing the net gains and losses of trade when exchange rates are uncertain.

Research, Business losses

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Buying and selling exchange goods: outcome information, curiosity and the endowment effect

Article Abstract:

People expect more money to give up an object, because they perceive the transaction to be a sort of loss to them. It follows then that they are willing to pay less for possessing the same object. This phenomenon is called endowment effect. Endowment effect does not exist in routine transactions or exchange transactions. The effect of curiosity on endowment effect is also examined.

Netherlands, Consumer Behavior, Analysis, Purchasing, Sales, Sales analysis, Consumer behaviour

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