endowment effect
/ɪnˈdaʊmənt ɪˌfekt/
valuing something more simply because you own it
endowment effect in a sentence
“The endowment effect explains reluctance to sell at fair prices.”
Origin of endowment effect
From endow (Latin indotare to provide with a dowry) + effect
Related Words
hyperbolic discounting
preferring smaller immediate rewards over larger later ones
framing effect
different reactions to the same information based on presentation
herd behavior
following the crowd rather than independent analysis
status quo bias
preference for the current state of affairs
mental accounting
treating money differently based on subjective categories
nudge
subtle policy changes that guide behavior without mandates