Foundations of Law and Economics
Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler
- Year
- 1991
- Venue
- Journal of Economic Perspectives
- Level
- Advanced
Summary
Documents evidence that ownership, reference points, and the current state affect valuation and choice. The article is important for legal analysis because endowment effects and status quo bias can alter bargaining behavior, default-rule effects, damage valuation, settlement incentives, and responses to legal entitlements.
Citation
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias." Journal of Economic Perspectives, 1991.
DOI: 10.1257/jep.5.1.193
BibTeX
@article{Kahneman1991Anomalies,
title = {Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias},
author = {Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler},
year = {1991},
journal = {Journal of Economic Perspectives},
doi = {10.1257/jep.5.1.193},
url = {https://www.aeaweb.org/articles?id=10.1257/jep.5.1.193}
}