Abstract
A formal theory is proposed to rationalize the puzzle of endowment effect. The theory is based on the notion of rational expectation principle and the value function of prospect theory, assuming a person has a single (only one) symmetric probability distribution of personal perceived value in mind for either the sell or the buy transaction. The theory is in line with the research (known to the author) done on the subject and with the one price assumption of neoclassic economics.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
