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
Recommended Citation
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
Included in
Behavioral Economics Commons, Cognition and Perception Commons, Cognitive Psychology Commons, Experimental Analysis of Behavior Commons, Marketing Commons
Date Posted: 15 June 2018
This document has been peer reviewed.