Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Endowment Effect Why You Overvalue What You Already Own
Why do we demand more to sell a coffee mug than we'd pay to buy it? In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the endowment effect—a cognitive bias that makes people overvalue what they already own. Using the classic 1990 Kahneman, Knetsch, and Thaler mug experiment, they break down how loss aversion and ownership distort our sense of value. Then they zoom out to real-world consequences: why home sellers often price too high in a slow market, why companies charge more for 'upgrades' than 'add-ons', and how traders holding losing…
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