Date of this Version
We examined the impact of specific emotions on the endowment effect, the tendency for selling prices to exceed buying or “choice” prices for the same object. As predicted by appraisal-tendency theory, disgust induced by a prior, irrelevant situation carried over to normatively unrelated economic decisions, reducing selling and choice prices and eliminating the endowment effect. Sadness also carried over, reducing selling prices but increasing choice prices—producing a “reverse endowment effect” in which choice prices exceeded selling prices. The results demonstrate that incidental emotions can influence decisions even when real money is at stake, and that emotions of the same valence can have opposing effects on such decisions.
Lerner, J.S., Small, D.A., & Loewenstein, G. Heart Strings and Purse Strings: Carryover Effects of Emotions on Economic Decisions, Psychological Science 15, no. 5: pp. 337-341. Copyright © 2004 Association for Psychological Science. Reprinted by permission of SAGE Publications.
This is a pre-publication version. The final version is available at http://dx.doi.org/10.1111/j.0956-7976.2004.00679.x
Lerner, J. S., Small, D. A., & Loewenstein, G. (2004). Heart Strings and Purse Strings: Carryover Effects of Emotions on Economic Decisions. Psychological Science, 15 (5), 337-341. http://dx.doi.org/10.1111/j.0956-7976.2004.00679.x
Date Posted: 15 June 2018
This document has been peer reviewed.