The endowment effect in India

To have and to hold

Adam Smith remarked that no dog ever made a free and fair exchange of one bone for another. Many pooch-owners will agree, having spent frustrating minutes trying to wrestle a stick or a ball off their pets. But humans are supposed to be rational. They should not value things they own more highly just because they already possess them. Experiments in the classroom have shown, however, that people may be subject to this trait, dubbed the “endowment effect”. In a classic study, students were randomly given a mug. ….[READ]

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