(no subject)
Jun. 17th, 2007 10:48 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
watertankThis study examines the Endowment Effect in the context of evaluating information. ...
Results show that, in agreement with Endowment Effect theory, people value information they own much more than information not owned by them. Our findings indicate that the ratio between Willingness to Accept (WTA) and Willingness to Purchase (WTP) for information is similar to that for market goods, and as with market goods, other than rational. Participants exhibited a strong inclination to purchase but not to sell information even though profit data suggests that the use of information had no objective benefit for profit-making. This preference is attributed to risk aversion rather than to loss aversion which is the most widely-accepted explanation of the Endowment Effect.
http://gsb.haifa.ac.il/~sheizaf/publications/RabanRafaeliSubjectiveIADISJan2003.pdf
stock market, patent system, amazon, web 2.0, open source as methods to overcome the Endowment Effect
also, why high-tech is more like porn than movies.
