Task 5 - For whom is parting with possessions more painful? Cultural differences in the endowment effect Flashcards
1
Q
What is the endowment effect?
A
The tendency for owners to overvalue objects they want to sell
2
Q
What role does culture play here?
A
West: Larger endowment effect
East: Less focus on self-enhancement -> lower self-endowment effect
3
Q
How has this been studied?
A
- Randomly assigned people to objects they are supposed to sell. Westerners offered a higher price overall.
- people primed on inter- vs in-dependence offered lower (higher) prices respectively
