Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias

By Daniel Kahneman, J. Knetsch, Richard H. Thaler. 1991

Subfields: Economics & Operations Research

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Citations in the corpus

Anticipating Safety Issues in E2E Conversational AI: Framework and Tooling (2021, background): “More generally, cognitive heuristics and biases affect how most humans assess beneﬁts, costs, and risks (Kahneman, 2011; Plous, 1993; Tversky & Kahneman, 1989; Kahneman et al., 1991).”
The evolution of private property (2007, background): “The endowment takes the form of a good being more highly prized by an agent who is in possession of the good than one who is (Tversky and Kahneman, 1981; Kahneman et al., 1991; Thaler, 1992).”
Are entrepreneurs' decisions more biased? An experimental investigation of the susceptibility to status quo bias (2007, background): “…solid effects known from behavioral economics: the endowment effect (Thaler, 1980) or the finding that willingness-to-pay (WTP) for a good is systematically lower than willingness-toaccept (WTA) for the same good possessed by an individual (so-called WTP–WTA disparity) (Kahneman et al., 1991).”
The "I Designed It Myself" Effect in Mass Customization (2010, background): “…for example, suggests that the subjective value a person attributes to an object is contingent upon whether she owns the object or not: Goods that are included in one’s endowment are valued more highly than identical goods not held in one’s endowment (Thaler 1980; Kahneman et al. 1990, 1991).”
How Basic Are Behavioral Biases? Evidence from Capuchin Monkey Trading Behavior (2006, background): “For a good overview of this bias and its connection to loss aversion, see Kahneman et al. (1991).”
Evaluation by Moments: Past and Future (2002, background): “In studies of the endowment effect, for example, the outcomes of owning or not owning a particular decorated mug are represented, depending on the current reference point, as getting a mug or giving up a mug (Kahneman, Knetsch and Thaler, 1991; Thaler, 1980; Tverksy and Kahneman, 1991).”
Exchange asymmetries incorrectly interpreted as evidence of endowment effect theory and prospect theory (2007, methodology): “Knetsch (1989) was the !rst to report results from exchange experiments to directly test the reversibility of indifference curves.”
Loss aversion without the endowment effect, and other explanations for the WTA-WTP disparity (2005, background): “These ratios are greater than could reasonably be attributed to an income effect, suggesting that the disparity may have important implications for consumer theory (Kahneman et al., 1991; Knetsch, 1989).”
Internet-Based Virtual Stock Markets for Business Forecasting (2003, background): “Participants endowed with a certain portfolio may have a tendency to stick to the initial endowment (“status quo bias”) or their willingness to accept greatly exceeds their willingness to pay (“endowment effect”) (Kahneman et al. 1991).”