Understanding The Endowment Effect
A behavioral bias, explained by writer and thinker Jonah Lehrer (great read).
Click Here To Read About The Endowment Effect
Example (Via Frontal Cortex)
I went jean shopping this weekend. Actually, I went to the mall to return a t-shirt but ended buying a pair of expensive denim pants. What happened? I made the mistake of entering the fitting room. And then the endowment effect hijacked my brain. Let me explain.
Additional Excerpt (Via Frontal Cortex)
The endowment effect is a well studied by-product of loss aversion, which is the fact that losing something hurts a disproportionate amount. (In other words, a loss hurts more than a gain feels good.) First diagnosed by Richard Thaler and Daniel Kahneman, the endowment effect stipulates that once people own something – they have an established or imagined “property right” to the object – that something dramatically increases in subjective value.
