Psychology
Cognitive Biases in Financial Decision-Making for Households
Quick fact
Research shows that households often overvalue items they already own—a bias called the 'endowment effect'—leading them to ask for much more to give up something than they would pay to get it, even for small everyday items like a coffee mug.
Why this is interesting
Have you ever held onto a losing stock because selling felt like 'realizing' a loss? What if your brain is wired to make that mistake?