endowment effect

nationality

American

occupation / innovator as

economist

behavioral economist

university professor

University of Chicago

innovator in the field of

behavioral economics

business

scientific organization

American Academy of Arts and Sciences

religion

Judaism

National Academy of Sciences

president

is the tendency for minimum selling price to exceed maximum buying price for a particular object.

the endowment effect the tendency for minimum selling price to exceed maximum buying price for a particular object

is the tendency of people to demand much more to give up an object than they would be willing to pay to acquire it.

'This pattern the fact that people often demand much more to give up an object than they would be willing to pay to acquire it is called the endowment effect (Thaler, 1980).' Thaler (1992) [book]

is the tendency of, say, randomly assigned owners of some object to require significantly more money to part with their possession (around $7) than randomly assigned buyers were willing to pay to acquire it (around $3).

'Thaler (1980) coined the term 'endowment effect' to refer to the finding that randomly assigned owners of an object appear to value the object more than randomly assigned non-owners of the object. For instance, in one well-known series of endowment effect experiments, Kahneman, Knetsch and Thaler (1990) found that randomly assigned owners of a mug required significantly more money to part with their possession (around $7) than randomly assigned buyers were willing to pay to acquire it (around $3). Kahneman et al. (1990, 1991) and Tversky and Kahneman (1991) attributed this result to loss aversion: owners' loss of the mug loomed larger than buyers' gain of the mug.' Gal (2006)

is the tendency to ascribe more value to things merely because one owns them.

In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them. This is typically illustrated in two ways. (wikipedia)

is the tendency to overvalue what one owns.

Endowment Effect is the idea that People overvalue what they own.

is the tendency to place a higher value than others on things that you own.

Simply put, the endowment effect says that once you own something you start to place a higher value on it than others would.' Montier 2010, p. 194

Richard Thaler

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Richard Thaler