Kahneman, Daniel; Knetsch, Jack L; Thaler, Richard H - In: Journal of Political Economy 98 (1990) 6, pp. 1325-48
for the mugs are then conducted. The Coase theorem predicts that about half the mugs will trade, but observed volume is …-to-pay. This paper reports several experiments that demonstrate that this "endowment effect" persists even in market settings with …, suggesting that transactions costs cannot explain the undertrading for consumption goods. Copyright 1990 by University of Chicago …