engineering a better experience
Thursday, June 07, 2012 (Updated )

Endowment Effect

by The Metaist

Summary

Once we own something, the endowment effect describes the degree to which we don't want to sell it.

Or maybe not.

Coconuts

Mine is better than yours.
(Photo: thienzieyung at Flickr)

 

Commentary

There is some controversy about whether or not this effect actually exists. Despite the issues with adequate subject controls, this idea is applied widely to corporate fiefdoms, artist's work, and other areas.

It's tempting to think that we think of our own items as having a higher worth than those of others, but it might not be the case.

See Also