Money is no object: Testing the endowment effect in exchange goods

We present a new experimental design to test whether the endowment effect exists for exchange goods, like money. We compare three groups to a baseline: one endowed with money, one endowed with chocolate coins, and one endowed with chocolate coins described as “tokens.” We find an endowment effect for chocolate coins, but no endowment effect for money or for chocolate coins when they are described as tokens. The results suggest that the endowment effect does not exist for exchange goods.