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Possession, Feelings Of Ownership, And The Endowment Effect, Jochen Reb, Terry Connolly
Possession, Feelings Of Ownership, And The Endowment Effect, Jochen Reb, Terry Connolly
Research Collection Lee Kong Chian School Of Business
Research in judgment and decision making generally ignores the distinction between factual and subjective feelings of ownership, tacitly assuming that the two correspond closely. The present research suggests that this assumption might be usefully reexamined. In two experiments on the endowment effect we examine the role of subjective ownership by independently manipulating factual ownership (i.e., what participants were told about ownership) and physical possession of an object. This allowed us to disentangle the effects of these two factors, which are typically confounded. We found a significant effect of possession, but not of factual ownership, on monetary valuation of the object. …