What category does Endowment Effect belong to?

Endowment Effect belongs to the "Cognitive Biases" category in personal knowledge management and productivity.

What are the key topics related to Endowment Effect?

Key topics related to Endowment Effect include: cognitive-biases, psychology, decision-making.

What are alternative names for Endowment Effect?

Endowment Effect is also known as: Ownership bias, Possession effect.

Endowment Effect

Overvaluing things simply because we own them.

Also known as: Ownership bias, Possession effect

Category: Cognitive Biases

Tags: cognitive-biases, psychology, decision-making

Explanation

The Endowment Effect describes our tendency to value things more highly simply because we own them. Studies show people demand more to give up an item than they would pay to acquire it. This affects everything from selling houses (overpricing) to keeping unused items (hoarding). In PKM, endowment effect can make us reluctant to delete or refactor notes we've created, even when they're outdated or redundant. Recognizing this bias helps make more rational decisions about what to keep.

Related Concepts

Loss Aversion
Status Quo Bias
Sunk Cost Fallacy

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