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Psychology

Loss Aversion and the Endowment Effect

Quick fact

In a classic experiment, students given a coffee mug demanded a median price of $5.25 to sell it, but students without the mug were only willing to pay a median of $2.25 for it—over twice as much, purely because they owned it.

Why this is interesting

Why do we demand far more to give up something we own than we would be willing to pay to get it in the first place?