PSYCHOLOGY
psychology
economics
ownership
bias
The Endowment Effect: Mine Is Better
We value things more simply because we own them. The pain of giving up a mug is greater than the pleasure of acquiring it.
Thaler & Kahneman• 5 min read
The Mug Experiment
Researchers gave people a coffee mug and asked how much they would sell it for. Average price: $7.00. They asked another group how much they would pay to buy that same mug. Average price: $3.00. Ownership doubles the perceived value. This is why it is so hard to declutter your house or sell your car for a fair price.