Wang,X.
Ong,L.S.
Tan,J.H.

This study examined how the type of ownership experience affects the valuation of a good. We hypothesized that the sense of ownership is a psychological derivative of resource acquisition and allocation. We predicted a valuation order of stable ownership or no-ownership < alternating (interchanging) ownership < sudden reversals in ownership. One hundred and sixty-six participants played an object-acquisition "game", a computer simulation of gaining or losing the ownership of an object (e.g., a pen, a mug, or a flashlight) with different outcome sequences, preprogramed but unbeknownst to the participants. After each game, the participant valued the target object by indicating their willingness-to-pay price, if the last outcome was a loss, or willingness-to-accept price, if the last outcome was a gain. The valuation of an object was highest after experiencing a final reversal in ownership from losses to a final gain or from gains to a final loss, followed by alternating ownership and stable (patrimonial) ownership or constant non-ownership. Wins or losses are not created equal due to different trajectories in how people come to own (lose) objects. The results also suggest that loss aversion is better understood as a specific result of ownership experience.

Wang, X.-T., Ong, L. S., & Tan, J. H. (2015). Sense and sensibility of ownership: Type of ownership experience and valuation of goods. Journal of Behavioral and Experimental Economics, 58, 171-177. doi:10.1016/j.socec.2015.04.010 (Full text)

Publication year	2015
Document type:	Article
Publication status:	Published
External URL:	http://doi.org/10.1016/j.socec.2015.04.010 View
Categories:
Keywords:	endowment effectloss aversionownership experiencepricingvaluation