The Endowment Effect

http://yesand.co.uk/category/free-articles/page/4/ THE ENDOWMENT EFFECT Researchers from the University of Pennsylvania, Yale and U.C. San Diego have recently documented a behavioral bias that we observe frequently in the property liquidation industry. The perception of an item’s value increases from the mere basis of owning it. This is known as the “Endowment Effect.” Historical economic theory proposes that […]