Tags » Endowment Effect

M&Ms -- What are Caramel M&M's worth to you?

In this commercial for the new caramel M&M’s, our grocery store employee is trying to buy back M&Ms from customers as they’re leaving the store. The employee offers $2, $3, and his watch to get the M&Ms back even though the customers could easily go through the line again and get a new bag. 97 more words

Behavioral & Game Theory

Klass & Zeiler: Endowment theory is wrong.

Klass, G., & Zeiler, K. (2013). Against Endowment Theory: Experimental Economics and Legal Scholarship. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2224105

This is a remarkable article. The authors make a clear-cut claim and justify this claim by means of a strong and convincing argument, grounded in experimental research; they put their claim in historical context; they spell out some implications of their claim for future research; and all along they cover an impressive amount of literature from different disciplines. 1,122 more words

Ownership

Mona Lisa Has Plans

http://videos.criticalcommons.org/transcoded/http/www.criticalcommons.org/Members/JJWooten/clips/p-r-losing-pitbull-tickets/video_file/mp4-high/s5-e16-loss-aversion-pitbull-mp4.mp4

Mona Lisa has just started working for Tom and wants to leave early to go to a concert that she received tickets for. Based on her logic, if Tom were to say no then it would feel like he’s taking something away from her. 23 more words

Tom Haverford

Donor strategies

Capture Attention for Your Cause: Behavioral Triggers for Giving

Despite popular science publications making it common knowledge that giving makes us happier (1), giving is the exception, not the norm. 80 more words

Behavioral Economics

Being an Essentialist

I just finished Greg McKeown’s book, Essentialism: The Disciplined Pursuit of Less. It’s an eye-opening book in times of digital overwhelm and multi-tasking. There is this unrelenting pressure to take on more. 939 more words

Workplace Navigator

Impractical Jokes -- Auction House Meltdown

The endowment effect in economics is a powerful explainer for irrationality. When people own something, they are often not willing to release an item even when someone is willing to pay more than it’s valued at. 75 more words

Television

21 -- Monty Hall Problem

MIT Professor, Micky Rosa (played by Kevin Spacey) challenges Ben with the Monty Hall problem of selecting a door with a prize hidden behind it. The… 31 more words

Movie