The Presence of Reference Price: How Value Can Appear Convergent to Buyers and Sellers

The Presence of Reference Price: How Value Can Appear Convergent to Buyers and Sellers

This paper argues that the endowment effect - the tendency of minimum selling price to exceed maximum buying price for a particular object - might be minimized when a reference price appears. The findings from 418 participants in two experiments support the hypothesis: the endowment effect would be...

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Bibliographische Detailangaben
Hauptverfasser: Chien-Huang, Lin, Chuang, Shih-Chieh, Chaang-Yung Kung
Format: Tagungsbericht
Sprache:eng
Schlagworte:
Experiments
Hypotheses
Prices
Studies
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Beschreibung
Zusammenfassung:This paper argues that the endowment effect - the tendency of minimum selling price to exceed maximum buying price for a particular object - might be minimized when a reference price appears. The findings from 418 participants in two experiments support the hypothesis: the endowment effect would be smaller when the reference price is available. The importance of reference price is thus highlighted.
ISSN:0098-9258