The impact of temporal focus on the endowment effect

2009 ◽  
Author(s):  
Promothesh Chatterjee ◽  
Caglar Irmak
Keyword(s):  
Endowment Effect ◽  
Temporal Focus ◽  
The Impact

scholarly journals Impact of alternative regional trade arrangements on the Ethiopian economy

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Habtamu Shiferaw Amogne ◽  
Taiji Hagiwara
Keyword(s):  
Transition Period ◽  
Terms Of Trade ◽  
Endowment Effect ◽  
Welfare Loss ◽  
Customs Union ◽  
Regional Trade ◽  
Partnership Agreement ◽  
Saving Effect ◽  
The Impact ◽  
Trade And Investment

AbstractThe Common Market for Eastern and Southern Africa (COMESA) is a Free Trade Area (FTA) regional trade agreement in Africa. Currently, Ethiopia is negotiating to join COMESA FTA. This study assesses the impact of three regional trade arrangements, COMESA FTA, customs unions, and the European Partnership Agreement (EPA) on the economy of Ethiopia. The analysis is based on a static Global Trade Analysis Project (GTAP) model, version 9 database. Unlike previous studies, the customs union scenarios are designed at the detailed Harmonized System (HS) level. COMESA FTA (scenario 1) with standard GTAP model results in a welfare loss for Ethiopia due to negative terms of trade and investment-saving effect, but with unemployment closure (scenario 2); Ethiopia enjoys a welfare gain mainly due to endowment effect. In scenario 3 (COMESA customs union) and scenario 4 (European Partnership Agreement), Ethiopia loses due to negative terms of trade and investment-saving effect. There is a large increase in demand for unskilled labor force in Ethiopia by around US$23 million, US$112 million, and US$43 million for scenario 2, 3, and 4 respectively. Moreover, there is a positive output effect for oilseeds, leather, and basic metals across all scenarios. The world, as a whole, enjoys welfare gains with COMESA FTA (scenario 1 and 2). However, with scenario 3 and 4, there is an overall welfare loss. There is no strong reason for Ethiopia to move to the customs union, and the EPA in the short run. Therefore, a transition period is necessary, but it is recommended for Ethiopia to join COMESA FTA.

scholarly journals Expanding Innovation Through Challenging Organization Endowments

2021 ◽  
Vol 9 (1) ◽  
pp. 1-24
Author(s):  
Steven Griggs
Keyword(s):  
Management Practices ◽  
Endowment Effect ◽  
Incremental Innovation ◽  
Large Firms ◽  
The Impact

Revolutionary innovation in mature or large organizations has been on the decline in recent years. Incremental innovation is the norm and few large organizations create evolutionary or revolutionary innovative offerings. A reason for the lack of innovation in mature or large firms is based on management practices over the last several decades. These practices have created biases in the form of an endowment effect, which results in incremental innovation. Endowment effects impact on innovation will be explored and methods to reduce the impact of endowment effect and overcome the biases are offered.

Enhancing valuation: the impact of self-congruence with a brand on the endowment effect

2015 ◽  
Vol 58 ◽  
pp. 178-185 ◽  
Author(s):  
Veronica L. Thomas ◽  
Marie Yeh ◽  
Robert D. Jewell
Keyword(s):  
Endowment Effect ◽  
The Impact

scholarly journals Private Valuation of a Public Good in Three Auction Mechanisms

2011 ◽  
Vol 2 (2) ◽  
pp. 1-29 ◽  
Author(s):  
Arnaud Z. Dragicevic ◽  
David Ettinger
Keyword(s):  
Public Good ◽  
Public Funding ◽  
Endowment Effect ◽  
Market Mechanism ◽  
Logarithmic Scale ◽  
Pure Public Good ◽  
Auction Mechanisms ◽  
Price Auction ◽  
Second Price Auction ◽  
The Impact

We evaluate the impact of three auction mechanisms—the Becker-DeGroot-Marschak (BDM) mechanism, the second-price auction (SPA), and the random nth-price auction (NPA)—in the measurement of private willingness-to-pay and willingness-to-accept for a pure public good. Our results show that the endowment effect is lower with the BDM mechanism. In this market mechanism, the effect disappears after a few repetitions. Yet, on a logarithmic scale, the random nth-price auction yields the highest speed of convergence towards equality of welfare indices. We also observe that subjects value public goods in reference to their private subjective benefit derived from their public funding.

scholarly journals Ghosts of the Past and Dreams of the Future

2011 ◽  
Vol 38 (3) ◽  
pp. 397-410 ◽  
Author(s):  
Anna Rabinovich ◽  
Thomas A. Morton
Keyword(s):  
Group Identification ◽  
Experimental Studies ◽  
Self Esteem ◽  
The Past ◽  
Negative Appraisal ◽  
The Future ◽  
Group Members ◽  
Individual Self ◽  
Temporal Focus ◽  
The Impact

The authors investigated the impact of temporal focus on group members’ responses to contextual ingroup devaluation. Four experimental studies demonstrated that following an induction of negative ingroup evaluation, participants primed with a past temporal focus reported behavioral intentions more consistent with this negative appraisal than participants primed with a future temporal focus. This effect was apparent only when a negative (but not a positive) evaluation was induced, and only among highly identified group members. Importantly, the interplay between temporal focus and group identification on relevant intentions was mediated by individual self-esteem, suggesting that focus on the future may be conducive to separating negative ingroup appraisals from individual self-evaluations. Taken together, the findings suggest that high identifiers’ responses to ingroup evaluations may be predicated on their temporal focus: A focus on the past may lock such individuals within their group’s history, whereas a vision of the future may open up opportunities for change.

Retail Return Policy, Endowment Effect, and Consumption Propensity: An Experimental Study

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Xianghong Wang
Keyword(s):  
Experimental Study ◽  
Consumer Behavior ◽  
Endowment Effect ◽  
Return Rate ◽  
Behavioral Theory ◽  
Return Policies ◽  
Return Policy ◽  
The Impact

Abstract The impact of retail return policy on consumer behavior has not drawn enough attention from researchers. Lenient return policies insure consumers against having regret after purchasing, so they may increase consumers' likelihood of purchasing. The behavioral theory of endowment effect suggests that consumers may then have a harder time returning purchased goods because people value objects more highly once they own them. We conducted a test of our hypotheses on how return policy and endowment effect influence purchasing tendency and return rate. This experiment proved that endowment effect did affect the returning behavior of consumers. It showed that lenient return policies significantly increased initial purchasing tendency but did not increase return rate. This suggests a potential to increase consumption by adopting lenient return policies.

scholarly journals Daydream believer: Rumination, self-reflection and the temporal focus of mind wandering content

2017 ◽  
Vol 13 (4) ◽  
pp. 794-809 ◽  
Author(s):  
Daisy Shrimpton ◽  
Deborah McGann ◽  
Leigh M. Riby
Keyword(s):  
Individual Differences ◽  
Cognitive Task ◽  
Positive Association ◽  
Mind Wandering ◽  
Self Report ◽  
Temporal Perspective ◽  
Self Reflection ◽  
Temporal Focus ◽  
The Impact ◽  
Dispositional Differences

Current research into mind-wandering is beginning to acknowledge that this process is one of heterogeneity. Following on from previous findings highlighting the role of self-focus during mind wandering, the present study aimed to examine individual differences in rumination and self-reflection and the impact such styles of self-focus may have on mind-wandering experiences. Thirty-three participants were required to complete the Sustained Attention Response Task (SART), aimed at inducing mind-wandering episodes, whilst also probing the content of thought in terms of temporal focus. Self-report questionnaires were also administered after the SART to measure dispositional differences in style and beliefs regarding mind-wandering and assessments of individual differences in rumination and self-reflection. Those individuals with reflective self-focus showed a strong positive association with positive and constructive thoughts. Critically, ruminative self-focus was positively associated with a tendency for the mind to wander towards anguished fantasies, failures and aggression, but it was also positively associated with positive and constructive thoughts. Furthermore, while dispositional differences in self-focus showed no relationship with the temporal perspective of thoughts when probed during a cognitive task, performance on the task itself was related to whether participants were thinking about the past, present or future during that activity. Such findings are discussed in line with previous research, and provide a further step towards accounting for the heterogeneous nature of mind-wandering.

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