Barry Schwartz Quote

This phenomenon is called the endowment effect. Once something is given to you, it’s yours. Once it becomes part of your endowment, even after a very few minutes, giving it up will entail a loss. And, as prospect theory tells us, because losses are more bad than gains are good, the mug or pen with which you have been endowed is worth more to you than it is to a potential trading partner. And losing (giving up) the pen will hurt worse than gaining (trading for) the mug will give pleasure. Thus, you won’t make the trade.

Barry Schwartz

This phenomenon is called the endowment effect. Once something is given to you, it’s yours. Once it becomes part of your endowment, even after a very few minutes, giving it up will entail a loss. And, as prospect theory tells us, because losses are more bad than gains are good, the mug or pen with which you have been endowed is worth more to you than it is to a potential trading partner. And losing (giving up) the pen will hurt worse than gaining (trading for) the mug will give pleasure. Thus, you won’t make the trade.

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About Barry Schwartz

Barry Schwartz may refer to:

Barry Schwartz (psychologist) (born 1946), American psychologist
Barry Schwartz (technologist) (born 1980), blogger and reporter who writes about search engines and search engine marketing
Barry K. Schwartz (born 1942), American businessman, Thoroughbred racehorse owner, and former horse racing industry executive
Barry Schwartz (sociologist) (1938–2021), American sociologist