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Thinking, Fast and Slow – Endowment Effect
By The Boy who Procrastinates  •  May 19, 2019

By The Boy Who Procrastinates - May 19, 2019


Following the previous 2 book reviews on Thinking, Fast and Slow by Daniel Kahneman, with respect to the subjects of anchoring effect and prospect theory, I will be sharing on another concept which is likely to be innately relatable to most of us. 

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...
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By The Boy who Procrastinates
I am currently a 28-year-old working adult in Singapore and financial independence is one of the ultimate goals which I hope to achieve.
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