Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

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The Role of Endowment Effect in Transaction: Case Study of Apple Store

Authors
Yuchen Guo1, Yi You2, *
1School of Public Finance and Taxation, Zhejiang University of Finance & Economic, Hangzhou, 310016, China
2College of Letters & Science, University of California, Berkeley, Berkeley, 94704, USA
*Corresponding author. Email: youyi1105@berkeley.edu
Corresponding Author
Yi You
Available Online 31 December 2022.
DOI
10.2991/978-94-6463-036-7_146How to use a DOI?
Keywords
Endowment effect; Apple Store; Design changes
ABSTRACT

This article examines the how Apple Store employs the endowment effect to enhance their profits. While touching is proved to be able to enhance people’s psychological ownership and further contributes to higher evaluations, We hypothesized that endowment effect could be either activated or enhanced after touching. We simulated our hypotheses based on the WTP-WTA model, and compared the simulated results with real Apple retail store data. The activation theory was more prominent compared to the enhancement theory. Further research into the applications is warranted through improve model assumptions in order to guide better retail store design changes.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2022
ISBN
10.2991/978-94-6463-036-7_146
ISSN
2352-5428
DOI
10.2991/978-94-6463-036-7_146How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuchen Guo
AU  - Yi You
PY  - 2022
DA  - 2022/12/31
TI  - The Role of Endowment Effect in Transaction: Case Study of Apple Store
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 995
EP  - 1002
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_146
DO  - 10.2991/978-94-6463-036-7_146
ID  - Guo2022
ER  -