Tags » Endowment Effect

The endowment effect in India

To have and to hold

Adam Smith remarked that no dog ever made a free and fair exchange of one bone for another. Many pooch-owners will agree, having spent frustrating minutes trying to wrestle a stick or a ball off their pets. 52 more words

Cognitive Biases

Neden sevgilimiz, sırf bizim olduğu için daha kıymetlidir?

Olaylar silsilesi 70’lerde Richard Thaler’in, Prof. R. kod adlı profesöründeki enteresan bir davranışı fark etmesiyle başlıyor. Prof. R. bir şarap meraklısı ve her şaraptan anlayan insan gibi belli bir kalitedeki şarapları tercih ediyor.  1,075 more words

Havadan Sudan

It's mine so it's worth more

Today I had a conversation with my friend who had recently won a Bluetooth speaker at his company raffle. He didn’t need it and I have been wanting one so I asked him what he would sell it for. 157 more words

Journal

Endowment effect is killing us

I’ve been getting rid of a lot of stuff lately. Practicing what I preach when it comes to understanding that the things we have don’t define us—we define ourselves. 320 more words

Practice

Civil Cases: What motivates them?

“This is a civil case.  It is about money.  Every step of the way is bounded by cost-benefit analysis and proportionality.” Justice Myers in Whitty v Wells… 313 more words

Law In Motion

Prospect theory #1 Buy my products!

Most of us are gonna have to make a myriad of financial decisions in our life times. We often presume that people are rational, and that people would make choices using their rationality. 477 more words

Consumer Psychology

The endowment effect at work

The Weird Psychology of Returning Stuff to the Store

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

Behavioral Economics