Social and Behavioral Sciences Commons^™

Earning Rewards And The Endowment Effect: Evidence From A Lab Experiment, Misael Bruzzone

Celebration of Research

The manner in which an item is attained affects the perceived value of that item by the owner. Previous research has shown that personal attachment (Shu et al. 2011), self-made products (Norton et al. 2012), and hard work (Festinger, 1957) all influence how much owners value items. I devised a lab experiment in which students from Northwestern College performed an unrelated test before receiving a hot drink of their choice. Participants were then asked to offer their willingness to pay for their drinks. The experiment differs from previous research in that the work being done is unrelated to the product …