Endowment Effect

I’m in grad school for economics and one of my favorite areas to focus on is behavioral economics.

Today’s video touches on the Endowment Effect.

For those unfamiliar with it, it’s the irrational value we add to our own possessions. I give examples in the video (like a gift from a friend etc). While today isn’t exactly advice to implement into your business I hope it makes you think because it’s something I think about constantly.

How can we be the judges of our own value? How can we objectively measure our possessions? Ultimately how can we remove our irrational bias?