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Endowment Effect
Explanations > Theories > Endowment Effect
Description | Example | So What? | See also | References
Description
When I own something, I will tend to value it more highly. If I have to sell it, I will probably want to ask more than it is really worth.
Example
Look around your house. Pick something. How much would you sell it for? How much would people really pay for it? How much would you pay for something like this at a second-hand store? The contents of your house are more valuable to you than other people.
So what?
Using it
When you want somebody to feel well-off, get them to total up their net worth.
Defending
When you are buying something, take along a neutral sales guide to show people what they are selling is really worth.
See also
References
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