Marketing Papers

Document Type

Technical Report

Date of this Version

5-2004

Publication Source

Psychological Science

Volume

15

Issue

5

Start Page

337

Last Page

341

DOI

10.1111/j.0956-7976.2004.00679.x

Abstract

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.

Copyright/Permission Statement

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

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Date Posted: 15 June 2018

This document has been peer reviewed.