Identity Rivalry and the Group Endowment Effect

The present study examined endowment effects for group-owned property where the property had rival group-based identity features and where the relationships were defined as either cooperative or competitive. The data indicated once again a group endowment effect: sellers set higher prices than buyers for group-owned property. Identity rivalry tended to increase both buyer and seller prices when there was a competitive relationship. When there was a cooperative relationship, identity rivalry lowered buyer prices, which resulted in a larger endowment effect. The data suggest the presence of a "gain attraction" effect as well as a "loss aversion" effect. People in cooperative relationships are more willing to let their partners take possession of objects that have shared identity; people in competitive relationships are less likely to let their opponents do this.