Question: Help me put a response to this-I found the article, How the Endowment Effect Impacts Trading Behavior by Liana F. Wait very interesting. It discusses

Help me put a response to this-I found the article, "How the Endowment Effect Impacts Trading Behavior" by Liana F. Wait very interesting. It discusses how there are links between dilated eyes and how likely an agreement to buy/sell would be made. First it mentions how people are focused on their possible loss instead of their potential gains and how people generally want to stick with what they know, so an additional incentive is needed to buy or sell. They conducted a study showing that sellers were looking more at the goods they were about to sell and the buyers cared more about the prices, spent more time looking at the number they were about to spend and so it was mentioned if sellers made the price tag bigger, brighter, or more colorful, that would draw the buyer's eyes. This would make the buyers be more likely to purchase the good since they would be able to spend all the time they need looking at the price tag. The researchers also noted that both the seller's and buyer's pupils would dilate when they have decided to purchase or sell the good. The article mentioned that pupils dilate when people have

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!