Browsing the archives for the Endowment Effect tag.


Second Seattle 2.0 Blog Post (on the Endowment Effect) is Live!

Blogging

I’ll stop doing this soon, I promise, but I’m still a little giddy when I see my name and photo on the front page of the Seattle 2.0 website:

image

You can read the whole blog post here.  Leave a comment!

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Change and the Endowment Effect

Personal, Philosophy

These great quotes have flown by on my tweetstream recently:

”If you don’t like where you are, change it! You’re not a tree.”

“When looking at Switching Costs . . . don’t forget to consider Switching Gains (emotional, social, psychological, etc.)”

On a related note, I finished my second blog post for Seattle 2.0 this morning.  It should go live tomorrow morning at 6 AM.  The topic is the Endowment Effect and whether or not we can use this hypothesis to explain any resistance to making the leap and starting your own business.  On this blog, however, my interests for the moment lean more in a personal direction, and I wonder if the EE can explain resistance to change in general.  I think it can.  I think the EE makes sense and that we overvalue what we currently have and undervalue that which we might potentially have were we to make changes.

I was interested, but not surprised, to find that one of the primary experimental evidence sets in favor of the EE was developed by Dan Ariely, author of Predictably Irrational.  I’m familiar with Dan from his writings on happiness and I think I’ve even blogged about him a couple times in these pages.

Speaking of change, I was talking to a friend this morning who has an interest in astrology and was told that “transformation” is a key concept for Scorpios and that we tend to seek out cycles of change, rebirth, reinvention…I’m not a believer in astrology as such, but since I’ve lately been thinking a lot about change and transformation, I was interested to hear her out.

Thought-experiment: If I had to pick ONE THING today to change about myself or my circumstances, what would it be, and why?  As I ponder this question, I will get back to work… :) Hope you all are having a great day today.

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