n, 2009). Why are consumers willing to pay so much for these overpriced warranties? Owning something instantly makes it more delightful (Kahneman, Knetsch, & Thaler, 1990; Morewedge, Shu, Gilbert, & Wilson, 2009), and as such, a plasma TV that has just become my plasma TV may seem worthy of protection

n, E. Diener, & N. Schwarz (Eds.), Well-being: Foundations of hedonic psychology(pp. 3-25). New York: Russell Sage Foundation Press. Kahneman. D.. Knetsch. J. L., & Thaler. R. H. (1990). Experimental tests of the endowment effect and the Coasc theorem. Journal of Political Economy. 98, 1325-1348. Kah

etc.) and subsequently state that they are willing to sell the mug for much more than those who were not given the mug are willing to pay (Kahneman, Knetsch, & Thaler, 1990). In the behavioral economics literature, the endowment effect has sometimes been explained by loss aversion, which is when we are ha