Week 6: Preference and choice

This week our group had to look at 'The experimental tests of the endowment effect and the coase theorem by Kahneman, Knetsch & Thaler (1990).
This study had a lot of studies to look at and test the endowment effect.
In simple terms, the endowment effect is, for example; when people overprice items that they are trying to sell.

Kahneman found that in most of the studies the endowment effect persisted. No matter what the item was and how long they had owned it for, they still put a higher value on the item, than buyers thought it was worth.

I found this paper quite hard to get to grips with, as it had a lot to do with economics, and a lot of studies!
However, listening to the other groups do the presentation on this paper was helpful, as I understood a lot more from listening to them explain the paper and some of the studies.
I am now understanding why having groups presnting might be useful to us, as it is an extra way of learning and understanding the papers we are having to read, because if we were to just go off and read the papers without hearing feedback form others on what they got from the paper, we might be stuck with only the information we received from reading the paper, which can be limited if the paper was not fully understood.