MENTAL MODEL · M4713

Endowment Effect

BehaviorHigh supportPsychology

Included

Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Once people own something, they assign it a higher value than when they did not own it, which is another manifestation of "the pain of loss is greater than the pleasure of gain."

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

Understanding the psychological impact of ownership. The endowment effect explains why people are reluctant to sell items they own even at reasonable market prices, why trial packs and free samples are so effective, and why changing the status quo meets resistance.

anchor

Anchor fast decisions

After owning something, an individual's valuation of it is higher than their willingness to pay before owning it, stemming from loss aversion—the pain of giving up ownership is greater than the pleasure of acquiring it. Once ownership is established, the item is incorporated into the "self" boundary.

MINIMUM ACTION

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Practice this model in one real situation:

First, identify which party in a transaction or negotiation already "owns" the subject and thus overvalues it. Second, use free trials or samples to let the other party establish ownership first, then discuss conversion. Third, when promoting change, pre-set awareness of "exit costs" to overcome resistance to the status quo. Fourth, remain aware of your own valuation biases and avoid anchoring on the state of ownership.

Check to track your progress (stored locally)

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Source support: Explicit

link
zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E7%A6%80%E8%B5%8B%E6%95%88%E5%BA%94ZH · Explicit
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