Reptilian brain · Loss, Risk & Scarcity
Endowment Effect
Owning something raises its value to you; owners demand roughly twice what buyers will pay, which is why trials, test drives and 'try it free' work.
An everyday example
Refusing to return a trial device at the price you would never have paid for it new.
What it can cost you
Over-valuing what you hold; being endowed on purpose by a trial.
Warning signs
- It feels like mine already.
- Giving it back feels like a loss.
One thing to do
Before a trial ends, write the price you would pay for the item new; decide against that number.
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