Friday, May 11, 2012

Graphic: Endowment Effect

Another gem from my favorite cartoonist Ms. Jessica Hagy of Indexed, who creatively turns complex ideas into simple graphics.

Ms Hagy calls the chart below as “What would you grab if the house was on fire?”Link

image

I would say that this is a precise depiction or representation of the endowment effect bias (from changingminds.org)

When I own something, I will tend to value it more highly. If I have to sell it, I will probably want to ask more than it is really worth.

No comments:

Post a Comment