Social Sciences
4 years ago

Evolutionary study reveals why we value what we own more than what we don't.

The Economic Journal
Learning to Like What You Have – Explaining the Endowment Effect
Steffen Huck, Georg Kirchsteiger, Jörg Oechssler

Paper Summary

The endowment effect means people value things they own more than things they don't. This happens because it helps in getting better deals when trading. Evolution has made us this way. So, we will always prefer what we have over what we don't.

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