Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Endowment Effect Behind Your Cluttered Garage
Why is it so hard to sell that old guitar or box of books? This episode of Behavioral Economics with Fexingo dives into the endowment effect — the psychological quirk that makes us value what we own more than what we don't. Lucas and Luna explore a classic experiment with coffee mugs at Cornell, then trace how the effect shapes everything from real estate pricing to corporate divestitures. They discuss the role of loss aversion, the difference between selling and buying, and why experienced traders are not immune. They also share practical tips for overcoming the bias — like asking…
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