Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The IKEA Effect and Why We Overvalue Our Own Work
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the IKEA effect—the cognitive bias that makes us place a higher value on things we've helped create. They trace its roots to a famous 2011 study by Michael Norton and colleagues, where participants overpaid for their own amateur origami. The hosts discuss why this bias persists even when the result is objectively worse than a professional version, and how companies like IKEA and Build-A-Bear use it to their advantage. They also touch on the darker side of the bias, from startup founders overvaluing their own…
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