The Influence Of Sense Of Power On Endowment Effect From The Perspective Of Ownership Theory

The endowment effect is an important psychological phenomenon in behavioral decision-making and behavioral economics research,and it is also a typical decision bias in daily life.Due to the different ownership of the goods,the buyer and the seller have inconsistent measurements of the value of the goods,which is not conducive to the transaction and leads to the decrease of market efficiency.Social power exists widely at all levels of society,it is the core concept of human social interaction and interpersonal relationships,it is an important foundation of social hierarchy,and it affects human psychology such as social cognition,emotions and behavioral decisions.And many aspects of behavior.Through a review of previous research,we find that there is a theoretical and logical connection between endowment effect and power.However,because previous research did not explore the effect of power on endowment based on the interpretation of ownership theory And the lack of specific empirical research at home and abroad.This study aims to study the relationship between social power and endowment effects based on previous studies.In this study,two studies are used to explore the impact of power on endowment effects.Study 1 used a paper-based questionnaire survey.A total of 191 paper-based questionnaires were issued and collected at Jiangxi Normal University,including 79 males and 112 females.The characteristics of the participants were measured through a self-assessment power scale.The sense of power and the situational questionnaire using the classic experimental paradigm of endowment effects research have initially confirmed the impact of power on endowment effects:(1)Different endowment states affect the level of valuation,that is,for the same item,the seller’s asking price is higher than The buyer’s bid confirms the endowment effect.(2)The power increases the endowment effect,and the lowest price that high-powered sellers are willing to accept(WTA)is higher than low-powered sellers;meanwhile,high-powered sellers are willing to accept(WTA))minimum price is significantly higher than the highest price that high-power buyers are willing to pay(WTP)for purchasing items,and the highest price that high-power sellers are willing to accept(WTA)when selling transaction items is the highest price that buyers are willing to pay(WTP).The price gap is higher than the price gap between the two authors under low power.Study 2 used a role-playing method to start the participants’ sense of power.The same as Study 1 used the classic experimental paradigm of the endowment effect to study the situational questionnaire.The results of Study 1 were further verified.A total of 106 participants were recruited,using 2(power: high,low)x 2(endowment status: seller,buyer)The experimental design of the experiment examines the impact of power on the endowment effect under the ownership theory.The results show that under the ownership theory,power increases Large endowment effect.Research 2 supports the findings of Research 1.In summary,the results of this study show that the endowment effect is the difference in valuation between the two parties due to the difference in ownership of the goods between the buyer and the seller,that is,the seller’s asking price is higher than the buyer’s bid.This proves the endowment effect.In addition,power Increasing endowment effect,the lowest price that high-power sellers are willing to accept(WTA)when selling goods is significantly higher than low-power sellers;meanwhile,the lowest price that high-power sellers are willing to accept(WTA)is significantly higher than high-power buyers The highest price is willing to pay(WTP)for buying items,and the lowest price for high-power sellers who are willing to accept(WTA)for trading items is higher than the highest price that buyers are willing to pay(WTP).price difference.