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 partially created ourselves. They discuss the classic 2011 study by Michael Norton, Daniel Mochon, and Dan Ariely, where participants valued their own origami creations almost as highly as expert-made ones. The hosts unpack why this bias drives everything from flat-pack furniture to DIY home renovations, and how businesses use it to boost customer loyalty. They also examine the dark side: when the IKEA effect leads to overvaluation of…
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