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value
You overvalue items because you own them.
A 1990 study demonstrated that sellers consistently ask for higher prices than buyers are willing to pay for the exact same commodity.
Ownership shifts the psychological value of an object because the loss of the item is felt more acutely than the gain of the money. This creates an immediate divergence in valuation between the two parties. You are biased by your existing attachment to your possessions.
You assign extra value to things simply because they are yours.
Where this comes from
- Study
- Kahneman, Knetsch, & Thaler, 1990, Journal of Political Economy
- What the check found
- The study and its findings are a seminal contribution to behavioral economics, and the description provided matches the documented results of the referenced 1990 experiment.
- Confidence
- Well replicated
Related
One of these every day, and every one names the study it came from. When a finding is contested, it says so.