The Influence of Endowment Effect on The Online C2C Commodity Market for Chinese International Students

Abstract

In the online Consumer to Consumer (C2C) market for commodities, buyers and sellers have a propensity to value a commodity differently, resulting in disparate pricing expectations and a resulting dispute. In addition, it is debatable if the valuation difference still remains when purchasing and selling behavior occurs outside of C2C platforms. This study sought to determine the extent to which the endowment effect affects prices in the online C2C commodities market for overseas Chinese students. Using questionnaires to collect data, this study discovered a price disparity between buyers and sellers of pre-owned commodities. Nonetheless, it has been shown that it is doubtful whether ownership plays a major influence in the outcome, as no participant has stated that ownership is an essential aspect in determining pricing. This research concluded that buyers and sellers have different valuations. However, the extent to which it is purely owing to the endowment effect is debatable. Based on the findings, this study recommended that C2C platforms establish a "bridge" that helps both buyers and sellers better understand the other's perspective.