Endowment Effect
(reading time – 50 sec.)

The endowment effect is the bias and perception that the personal ownership of an object exceeds any listed market value.

One of the most famous examples of the endowment effect in the literature is from a study by Daniel Kahneman in which participants were given a mug and then offered the chance to sell it or trade it for an equally valued alternative (pens).

They found that the amount participants required as compensation for the mug once their ownership of the mug had been established ("willingness to accept") was approximately twice as high as the amount they were willing to pay to acquire the mug ("willingness to pay").

Topic: #CognitiveBiases
Source: Wikipedia