Experimental tests of the endowment effect and the Coase theorem (by Daniel Kahneman, Jack L. Knetsch, Richard H. Thaler)

This review summarizes the historical place of the seminal contribution of Kahneman et al. (hereafter KKT) from its origins to the theory to being the catalyst of an entire area of scholarship. This new literature has produced evidence both in concert with the original KKT conclusions as well as evidence refuting certain insights from KKT. The general theme of my summary is that even imperfect papers can have a deep impact, both within and outside academia – a lesson that today’s critics should consider, as young experimentalists continue to fight the tyranny of the top 5.