Abstract

http://ssrn.com/abstract=1641369
 
 

References (29)



 


 



Beyond Ownership: Lessees and Idiosyncratic Valuation


Gordon Bermant


University of Pennsylvania - Department of Psychology

Heather Barness-Blakeman


University of Pennsylvania

July 16, 2010

5th Annual Conference on Empirical Legal Studies Paper

Abstract:     
Previous research has shown that home ownership and possession of a small good both produce an endowment effect whereby endowees value their property higher than its market price. The present study investigates the existence of a bridge between these findings: whether non-owning possession of a home causes the possessor to add a value to the property above its market value. Subjects, who were randomly assigned to one of five conditions that varied engagement with a rented property, completed a survey that harvested subjects’ ideas about fair compensation when a proprietor denies lease renewal to a tenant. Tenants judged as fair more relocation allowance and a higher discounted purchase price than did non-residents. The results suggest that tenants add idiosyncratic value to their residences beyond the market value. This study thus shows promise in helping to develop more representative laws dealing with property transfers and furthers the body of evidence that possession, even without ownership, elicits an endowment effect.

Number of Pages in PDF File: 32

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Date posted: July 19, 2010  

Suggested Citation

Bermant, Gordon and Barness-Blakeman, Heather, Beyond Ownership: Lessees and Idiosyncratic Valuation (July 16, 2010). 5th Annual Conference on Empirical Legal Studies Paper. Available at SSRN: http://ssrn.com/abstract=1641369 or http://dx.doi.org/10.2139/ssrn.1641369

Contact Information

Gordon Bermant
University of Pennsylvania - Department of Psychology ( email )
3815 Walnut Street
Philadelphia, PA 19104-6196
United States
Heather Barness-Blakeman (Contact Author)
University of Pennsylvania ( email )
Philadelphia, PA 19104
United States
215-858-5020 (Phone)
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References:  29

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