By The Boy Who Procrastinates - May 19, 2019
Have you ever noticed that most babies may throw violent tantrums when deprived of items they considered theirs? Undoubtedly, our sense of ownership emerges at a tender age but this also raises the questions: Why are we so attached to our things? How will this sense of attachment impact our financial decisions?
Endowment Effect First postulated by Nobel Prize-winning economist Richard Thaler in 1980, the endowment effect refers to the tendency of irrationally ascribing higher value on items that we own, regardless of its objective market value.In the same vein, this cognitive bias describes the idea...