We tend to overvalue what we already own from "summary" of Predictably Irrational, Revised by Dan Ariely
Consider the following scenario: you are in possession of a concert ticket that you bought for $100. You suddenly find out that the concert is not as appealing as you originally thought. Now, if someone offers you $80 for the ticket, you might hesitate to sell it. Why is that?It turns out that we have a tendency to overvalue what we already own. This phenomenon is known as the endowment effect. Once we possess something, we attach a higher value to it than we did before we acquired it. This is why you might feel reluctant to part with your concert ticket for $80, even though you wouldn't have paid that much for it if you didn't already own it.
The endowment effect is a powerful force that influences our decision-making processes. It can lead us to make irrational choices based on our emotional attachment...
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