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People tend to overvalue what they already have from "summary" of Predictably Rational? by Richard B. McKenzie
When people have something in their possession, they tend to place a higher value on it than they would if they didn't own it. This psychological phenomenon is known as the endowment effect. In other words, individuals tend to overvalue what they already have simply because it is theirs. This overvaluation can lead to irrational decision-making and behavior. The endowment effect has been studied extensively in the field of behavioral economics and has been shown to influence a wide range of situations, from consumer behavior to negotiation tactics. For example, research has found that people are more likely to hold on to an item they already own, even if they could make a profit by selling it. This is because they place a higher value on the item simply because it is in their possession. The endowment effect can also be seen in how individuals perceive the value of their time and effort. People tend to place a higher value on things that they have invested their time and effort into, even if the outcome is not as valuable as they initially thought. This can lead to a reluctance to let go of projects or ideas that are not working out, simply because they have already put so much time and effort into them.- The endowment effect highlights the ways in which our emotions and attachments can influence our decision-making processes. By being aware of this bias, individuals can work to counteract it and make more rational choices. However, it is important to recognize that the endowment effect is a natural part of human psychology, and overcoming it may require conscious effort and self-awareness.
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