Mental Accounting created 2012.02.07 (1)

Mental Accounting created 2012.02.07 (1) - Quiz #4,...

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Quiz #4, February 10th What is endowment effect? Analyze the graphical explanation of endowment effect. What  is the gain when person ends up with the object rather than  money (from seller/buyer/choser’s point of view)? Why they  are different? If the endowment effect is real, what does it imply in terms of  number of trades? Why? Can you explain it with a simple  example? Consider Knetsch 1989 experiment? What might be driving  the result other than endowment effect? What is the main innovation in Kahneman, Knetsch, and  Thaler (1990)? Why it is one of the most respected tests of  endowment effect? What is the aim of Marshall, Knetsch, Sinden (1986)? What is  the finding? What is the aim of Loewenstein and Issacharoff (1994)? What  is the finding?
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Mental Accounting Thaler 1985
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Anecdotes:  Lost fish in transit, reimbursement of $300, 
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Mental Accounting created 2012.02.07 (1) - Quiz #4,...

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