Endowment Effect

[!INFO]-
topic: 🧠 Psychology
links: Confirmation Bias - We like ideas that support our point of view
source: Essentialism - The Disciplined Pursuit of Less
tags: #permanent-note #published

Last Modified: =dateformat(this.file.mtime, "MMM. dd, yyyy - HH:mm")

We overvalue things we own.

The endowment effect is a cognitive bias that describes the tendency of individuals to value items they already own more than identical items they do not own. This bias suggests that people assign a higher value to something simply because they possess it, even if the item's objective worth remains the same.