A review of endowment effect and Vickrey auction methods: behavioral map of predictable patterns
Fang-Fang TangThis paper offers a comprehensive review of experimental and theoretical research on the endowment effect, with a particular focus on the work of Jack Knetsch and collaborators. It critically evaluates both real-exchange and hypothetical elicitation methods, highlighting robust empirical evidence of preference asymmetries and the non-reversibility of indifference curves. Special attention is given to the role of Vickrey auctions in testing willingness-to-pay and willingness-to-accept disparities, including experimental variations that demonstrate the persistence or elimination of valuation gaps depending on auction structure and group size. Building on this foundation, the paper proposes a novel “behavioral map” framework to systematize context-dependent regularities in economic decision-making. This conceptual roadmap aims to identify and catalog predictable deviations from rational choice theory, laying the groundwork for a large-scale research agenda akin to a behavioral genome project. The analysis concludes with methodological and philosophical reflections on experimental design and theoretical generalization.