Bias du Jour #2
Note that I’m not presenting these in any particular order.
The Endowment Effect: The tendency of people to value something more after they have a property interest in it (such as ownership).
For instance, in one study, subjects had to determine a price for a coffee mug. Those who owned the mug attributed a higher price than those who didn’t.
Cites: Thaler, R. (1980). Towards a positive theory of consumer choice. Journal of Economic Behavior and Organization, 1, 39-60; Jason F. Shogren; Seung Y. Shin; Dermot J. Hayes; James B. Kliebenstein ‘Resolving Differences in Willingness to Pay and Willingness to Accept’ The American Economic Review, Vol. 84, No. 1. (Mar., 1994), pp. 255-270