The Effect of Ownership History on the Valuation of Objects

14 Pages Posted: 19 Dec 2010

See all articles by Michal Ann Strahilevitz

Michal Ann Strahilevitz

Saint Mary's College of California - School of Economics & Business

George Loewenstein

Carnegie Mellon University - Department of Social and Decision Sciences

Date Written: December 1, 1998

Abstract

Previous work on the endowment effect has demonstrated that current ownership status affects object valuation and that this effect occurs instantaneously upon possession of an object. The current work presents findings from four studies which indicate that the history of past ownership can also affect object valuation. For objects currently in one's possession, we find that valuation increases with duration of ownership. For objects not in one's possession, previous ownership experience increases valuation, and the increase seems to be related to the duration of ownership before loss. In addition, the perceived attractiveness of objects, although not instantly affected by endowment, is found to increase with duration of ownership.

Keywords: ownership history, endowment effect, valuation

JEL Classification: M30, M39

Suggested Citation

Strahilevitz, Michal Ann and Loewenstein, George F., The Effect of Ownership History on the Valuation of Objects (December 1, 1998). Journal of Consumer Research, Vol. 25, No. 3, 1998, Available at SSRN: https://ssrn.com/abstract=1728183

Michal Ann Strahilevitz (Contact Author)

Saint Mary's College of California - School of Economics & Business ( email )

United States
510-594-9999 (Phone)

George F. Loewenstein

Carnegie Mellon University - Department of Social and Decision Sciences ( email )

Pittsburgh, PA 15213-3890
United States
412-268-8787 (Phone)
412-268-6938 (Fax)

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