|Mr. Whatley, Carson High School||
The phenomenon in which most people would demand a considerably higher price for a product that they own than they would be prepared to pay for it (Weber 1993).
The stuff we own is more valuable because we own it.
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.’
We would prefer to hold on to what we have than sell it, even when
I am a husband & father, teacher & mentor, a man of learning & spirit, and athlete & craver of new challenges.