Recent research has documented an 'endowment effect' whereby people become more attached to objects they receive than would be predicted from their prior desire to possess the object. In two experiments, we test whether people are aware of the effect whether they realise that they will become attached to an object once they receive it. In both experiments, subjects without an object underestima...

We analyze preferences over finite decision problems in order to model decision-makers with “changing tastes”. We provide conditions on these preferences that identify the Strotz model of consistent planning. Building on an example by Peleg and Yaari (1973), we show that for problems with infinitely many choices, Strotz’s representation of preferences may not be well-defined. For that case, we ...