Endowment Effect User Experience (UX) topic overview/definition
Endowment Effect: Concept DefinitionThe endowment effect is the idea that people tend to value something more simply because they already own it. This means that people are likely to pay more to keep something they already have than they would pay to buy something of a similar value that they do not already own. It also means that people are reluctant to trade something that they own for something of a similar value.
For your convenience, we’ve collected all UX literature that deals with Endowment Effect. Here’s the full list:
Loss Aversion Theory - The Economics of Design
If people were rational then the feelings invoked by losing something or gaining something (of equal value) ought to be the same. We should feel as pleased that our friend has just given us $100 for our birthdays as we feel bad that we have lost $100 when we forgot to take it from an ATM machine.In reality this isn’t the case. Psychologists and ...
Endowment Effect - The Economics of Design
The Endowment Effect is a contradiction of the classical economic idea that people always behave rationally within an economic system. It is the surprising idea that we are prepared to pay more money to retain something that we already own than we would pay for the item if we did not own it. It is often also shown that we are unwilling to trade ...