In 2013, a mountain climber named Chad Thomas told The Wall Street Journal that he’d returned a backpack to the outdoor-clothing and -gear retailer REI earlier that year — a backpack that he had, by the way, originally purchased in 2004. 59 more words
Tags » Endowment Effect
Gelman, S. a., Manczak, E. M., & Noles, N. S. (2012). The nonobvious basis of ownership: Preschool children trace the history and value of owned objects. 899 more words
Behaviour Economics (“BC”) is an important topic when it comes to money, how we spend it, why we spend it, etc.
BC is applied to the study of classical economics – it’s the psychology behind the market. 495 more words
The anti money laundering laws have come into effect. The voluntary period of compliance is set at 30th September. Those desirous of escaping punishment and prosecution have to declare their income, pay 30% as tax and a further 30% as penalty in return for immunity. 780 more words
In behavioral economics, the ‘endowment effect’ states that individuals ascribe higher value to the objects they possess than to the objects they could secure. If this is true, then we are ‘loss averse’ creatures that prefer to keep what we have and are more disheartened by the loss of our possessions than by the gain of some other, perhaps more valuable item. 347 more words