endowment effect
 

 

Endowment effect

The occurrence that people tend to value things that they own more than similar or equivalent items which are not theirs’As suggested by Prospect theory, people seem to interpret the psychological value they place upon something – a pen, a cup, or a packet of sweets – in terms of gains and losses, with the prospect of a loss seen as having greater impact than an equivalent gain.

 

(see also: heuristics, judgement)

  

 

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