Chimpanzees also display some of the same quirks that humans do. Behavioral economists have long found that humans, quite irrationally, tend to value an object more after they have gained possession of it. For example, we might think a coffee mug is worth only $5 when we buy it at the store. Then, after we buy it, we value it more. Someone could offer us like $8 or $9 for it. But, we're like, "No way! This is my precious mug!" From a purely rational economic perspective, this behavior doesn't make sense.
Richard Thaler, a founder of behavioral economics, called this tendency to value things in our possession more "the endowment effect." He connected it to a broader human quirk, which is called loss aversion. The basic idea is that we experience more pain from losing something than pleasure from gaining that exact same thing. We see this behavior everywhere, whether it's our romantic relationships or our consumer decisions. You may sort of like getting something, but you'll really hate losing it!
June 6, 2023 NPR.
Greg Rosalsky
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