Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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Research and Application of the Endowment Effect

Authors
Jiaxuan Zhou1, *
1The High School Affiliated to Renmin University of China, Beijing, China
*Corresponding author. Email: Jocelyn0623@163.com
Corresponding Author
Jiaxuan Zhou
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-052-7_106How to use a DOI?
Keywords
Endowment effect; Behavioral economics; Society welfare; Market trading; Economic policy
Abstract

To analyze the endowment effect on society and education, the applications are studied by using the comparative research method and behavioral research method and have been summarized as the applications in various fields in the paper. Early studies of the endowment effect were conducted on willingness to pay and willingness to accept hypothetical questions in the absence of monetary incentives. It was often used in the framework of benefit and cost analysis of non-market goods such as environmental resources. In order to address hypothetical situations Knetsch and Sinden (1984) attempted to conduct an experimental study of willingness to pay and willingness to accept using real decision situations and cash incentives, which provided an opportunity to follow up on the behavioural and cost implications of the endowment effect. This provides a classic reference model for subsequent work on the behavioural and experimental economics of endowment effects. The results have shown that there is a cross-relationship in different topics and the endowment effect have a momentous impact to balance society’s welfare, achieve better education accomplishment and make consumers make more reasonable and sensible behaviors in trading.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
978-94-6463-052-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_106How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jiaxuan Zhou
PY  - 2022
DA  - 2022/12/27
TI  - Research and Application of the Endowment Effect
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 937
EP  - 942
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_106
DO  - 10.2991/978-94-6463-052-7_106
ID  - Zhou2022
ER  -