The Endowment Effect in China Rural Land and Property Market

Research Article
Open access

The Endowment Effect in China Rural Land and Property Market

Tong Liu 1*
  • 1 University of Exeter    
  • *corresponding author tl583@exeter.ac.uk
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/29/20231343
AEMPS Vol.29
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-079-0
ISBN (Online): 978-1-83558-080-6

Abstract

To evaluate how the endowment effect be the obstacle in the agricultural and property market and to find key factors which have impact on endowment effect, this article re-defined what the endowment effect is in rural-land property market, which is mainly focus on how the decision-maker establish choices and evaluates the worth of the deals they hold. Then, this paper studies the phenomenon of price preference among supply and demand-side of farmland and property market in the application of Shaanxi province. Third, this paper exams the Chengdu's villagers voluntarily and compensation of the withdrawal from rural homesteads (WRH) with the obvious conflict between supplying and demanding of urban and agricultural building land resources. Based on the re-definition and main applications, this paper indicates that the key factors which affect the endowment effect includes emotional ties, degree of substitution of goods as well as products, income levels, price preferences on the demand sides as well as supply sides of the land market, perceived risk evaluation of future income situation, forecasted risk of the stability of the rural land property rights, the labour situation among various types of farmers, age, membership in cooperatives and whether there is a local intermarriage or not. This paper will also critically examine how endowment effect influence supply and demand relationships in the land and property markets, how the government might issue directives or create policies to support or discourage endowment effect in the farmland market and how to establish the innovation of "three rights of separation" in the land market. The potential remedies and suggestions are provided.

Keywords:

endowment effect, rural land, property market

Liu,T. (2023). The Endowment Effect in China Rural Land and Property Market. Advances in Economics, Management and Political Sciences,29,1-8.
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References

[1]. Weaver, R., and Frederick, S.: A Reference Price Theory of the Endowment Effect. Journal of Marketing Research, vol. 49(5), pp. 696–707. (2012).

[2]. Knetsch, J. L., & Wong, W.-K.: The endowment effect and the reference state: Evidence and manipulations. Journal of Economic Behavior & Organization, vol. 71(2), pp. 407–413. (2009).

[3]. Hou, C.: A Study of Influences of Endowment Effect upon Peasant Household’s Farmland Transfer Willingness in the Perspective of Property Rights Economics. Proceedings of the 2016 2nd International Conference on Social Science and Higher Education. (2016).

[4]. Wachter, S. M., & Megbolugbe, I. F.: Impacts of housing and mortgage market discrimination racial and ethnic disparities in homeownership. Housing Policy Debate, vol. 3(2), pp. 332–370. (1992).

[5]. Gintis, H.: The Endowment Effect and the Origin of Private Property. Institutional Change and Economic Behaviour, pp.160–177. (2008).

[6]. Nash, J. G., & Rosenthal, R. A.: An investigation of the endowment effect in the context of a college housing lottery. Journal of Economic Psychology, vol. 42, pp. 74–82. (2014).

[7]. Liu, R., Jiang, J., Yu, C., Rodenbiker, J., & Jiang, Y.: The endowment effect accompanying villagers’ withdrawal from rural homesteads: Field evidence from Chengdu, China. Land Use Policy, vol. 101, pp. 105-107. (2021).

[8]. Zhang, H., Li, J., Shen, J., & Song, J.: Measurement of Supply-and Demand-Side Endowment Effects and Analysis of Their Influencing Factors in Agricultural Land Transfer. Land, vol. 11(11), pp.2053. (2022).

[9]. Yan, J., Yang, Y., & Xia, F.: Subjective land ownership and the endowment effect in land markets: A case study of the farmland “three rights separation” reform in China. Land Use Policy, vol.101, pp.105-137. (2021).

[10]. Gintis, H.: The evolution of private property. Journal of Economic Behavior & Organization, vol. 64(1), pp.1–16. (2007).

Cite this article

Liu,T. (2023). The Endowment Effect in China Rural Land and Property Market. Advances in Economics, Management and Political Sciences,29,1-8.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-079-0(Print) / 978-1-83558-080-6(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.29
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Weaver, R., and Frederick, S.: A Reference Price Theory of the Endowment Effect. Journal of Marketing Research, vol. 49(5), pp. 696–707. (2012).

[2]. Knetsch, J. L., & Wong, W.-K.: The endowment effect and the reference state: Evidence and manipulations. Journal of Economic Behavior & Organization, vol. 71(2), pp. 407–413. (2009).

[3]. Hou, C.: A Study of Influences of Endowment Effect upon Peasant Household’s Farmland Transfer Willingness in the Perspective of Property Rights Economics. Proceedings of the 2016 2nd International Conference on Social Science and Higher Education. (2016).

[4]. Wachter, S. M., & Megbolugbe, I. F.: Impacts of housing and mortgage market discrimination racial and ethnic disparities in homeownership. Housing Policy Debate, vol. 3(2), pp. 332–370. (1992).

[5]. Gintis, H.: The Endowment Effect and the Origin of Private Property. Institutional Change and Economic Behaviour, pp.160–177. (2008).

[6]. Nash, J. G., & Rosenthal, R. A.: An investigation of the endowment effect in the context of a college housing lottery. Journal of Economic Psychology, vol. 42, pp. 74–82. (2014).

[7]. Liu, R., Jiang, J., Yu, C., Rodenbiker, J., & Jiang, Y.: The endowment effect accompanying villagers’ withdrawal from rural homesteads: Field evidence from Chengdu, China. Land Use Policy, vol. 101, pp. 105-107. (2021).

[8]. Zhang, H., Li, J., Shen, J., & Song, J.: Measurement of Supply-and Demand-Side Endowment Effects and Analysis of Their Influencing Factors in Agricultural Land Transfer. Land, vol. 11(11), pp.2053. (2022).

[9]. Yan, J., Yang, Y., & Xia, F.: Subjective land ownership and the endowment effect in land markets: A case study of the farmland “three rights separation” reform in China. Land Use Policy, vol.101, pp.105-137. (2021).

[10]. Gintis, H.: The evolution of private property. Journal of Economic Behavior & Organization, vol. 64(1), pp.1–16. (2007).

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