Month: February 2018

Behavioral Econs 101: The endowment effect and loss aversion Part 1 – Prospect Theory

Behavioral Econs 101: The endowment effect and loss aversion Part 1 – Prospect Theory

In this third installment of our Behavioral Econs 101 series(for parts 1 and 2, see here, and here) we finally turn to a discussion of the endowment effect. Why do losses feel so much more painful than an equivalent gain feels good? Why are we