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Mispredicting Others’ Valuations: Self-Other Difference in the Context of Endowment
Didem Kurt and J. Jeffrey Inman
Journal of Consumer Research
Vol. 40, No. 1 (June 2013), pp. 78-89
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/10.1086/668888
Page Count: 12
You can always find the topics here!Topics: Empathy, Emotion, Average prices, Coffee mugs, Prices, Selling price, Underestimates, Endowment effect, Bid prices, Overestimates
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The authors argue that people systematically fail to predict how much others in the same role (i.e., owner or buyer) value an object due to self-other differences in valuation arising from intra-role empathy gaps. Across five studies in an endowment context, owners consistently underestimate the average selling price demanded by other owners, whereas buyers overestimate the average purchase price offered by other buyers by over 20%. Participants, however, make more accurate predictions of the valuation of others in the same role when either (a) an external influence (i.e., similarity priming) or (b) their high cognitive and emotional tendency to connect with others leads to a reduction in empathy gaps. Implications for theory and practice are discussed.
© 2012 by JOURNAL OF CONSUMER RESEARCH, Inc.