Tag: Daniel Kahneman

Behavioral Econs 101: The endowment effect and loss aversion Part 2 – Experimental economics in action

Behavioral Econs 101: The endowment effect and loss aversion Part 2 – Experimental economics in action

In this fourth installment of our Behavioral Econs 101 series(for parts 1, 2 and 3, see here, here and here) we continue our discussion of the endowment effect. In Part 3, we explained how Prospect Theory helps us understand why losses feel so much more 

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