Mind & Psychology October 18, 2025 1 min read

The Endowment Effect: Mine Is Better

T
Thaler & Kahneman Contributor

The Mug Experiment

Researchers gave people a coffee mug and asked how much they would sell it for. Average price: 7.00.Theyaskedanothergrouphowmuchtheywouldpaytobuythatsamemug.Averageprice:7.00. They asked another group how much they would pay to buy that same mug. Average price: 3.00. Ownership doubles the perceived value. This is why it is so hard to declutter your house or sell your car for a fair price.

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