Endowment effect
The Endowment Effect is a psychological phenomenon where people place a higher value on things they own compared to identical items they do not own. For example, if you own a mug, you might think it's worth $10, but if you see the same mug in a store, you might only be willing to pay $5 for it. This inclination stems from emotional attachments and a sense of loss when considering selling or parting with owned items, leading to a bias in how we perceive value based on ownership rather than objective qualities.
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The Endowment Effect is a psychological phenomenon where people tend to assign more value to items simply because they own them. This means that individuals often overvalue their possessions compared to similar items they do not own. For example, if you were given a coffee mug, you might demand a higher price to sell it than you would be willing to pay for that same mug if you didn’t own it. This effect highlights how ownership can distort our perception of value, influencing decision-making and economic behavior.