Is the Endowment Effect Due to Incomparability? https://kevindorst.substack.com/p/is-the-endowment-effect-due-to-incomparability
"The #endowmentEffect is the finding that merely owning an item seems to make people value it more. It’s a problem for standard economic models, and helped spur the rise of #behavioralEconomics. But a simple generalization of those standard models—one that philosophers have long defended—can explain the empirical data."

Expected subjective value theory: A representation of decision under risk & certainty
https://doi.org/10.1016/j.jebo.2022.12.013
"…sheds new light on the computational origins & evolution of #risk attitudes & aversion to outcomes below reward expectation (reference point)
…delivers novel explanations of the #EndowmentEffect, the observed #heterogeneity in probability weighting functions, & the #AllaisParadox, all with fewer parameters & higher descriptive accuracy than #ProspectTheory."
https://www.tymula.com/agnieszka/wp-content/uploads/sites/3/2016/04/2018_ESVT_2018_09_26.pdf

http://pietroortoleva.com/papers/WTA-P.pdf
3 new facts that contradict standard theories:
* the endowment effect is unrelated to #LossAversion for risky prospects;
* WTA & WTP are largely uncorrelated;
* WTA & WTP are related to different, independent features of risk preferences.
…results contradict the standard explanation of the #EndowmentEffect in #BehavioralEconomics that it is due to an asymmetry in the treatment of gains and losses is manifest in loss aversion for risky prospects.
#BoundedRationality

The Endowment Effect in the General Population
https://bibliothek.wzb.eu/pdf/2022/ii22-204.pdf

A field experiment on the German SocioEconomic Panel reveals that the #EndowmentEffect is present in a representative population sample, with only 32% of respondents engaging in item exchange when given the opportunity. …also finds individual-level indications that the decision to trade is related to other economic decisions.
#ExperimentalEcon #BoundedRationality