Traditional preference theories debunked: No evidence for endowment effect theory!
The study tested why people sometimes value things differently depending on whether they own them or not. It found that this difference is not due to loss aversion or entitlements, as previously thought. Instead, the way experiments are set up can influence how people value things. When the setup was changed, the difference disappeared. This suggests that classical preference theories, not loss aversion, explain why people value things differently based on ownership.
