In chapter 7, the author presented the idea of how people overvalue what
they have and why they behave themselves in such irrational way when it comes
to ownership. Also, Ariely raised the issue that people believe that his/her
possession is worth more money while at the same time buyer’s willingness to
pay is quite less. This unfolds the notion of «endowment effect». According to
the beginning of the chapter, the author gives us an example of
how selection process of basketball tickets at Duke
University was developed. In fact, those students who received tickets
valued them approximately 10 times more than those who did not get them. 

Ariely also gives us three irrational quirks of human nature:

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1) People always over-evaluate things which belong to them.

2) Ownership plays a huge role in our lives. Humans think
only about what they can omit rather than acquire something.

3) We assume that people will not appreciate our belongings
after they buy our goods.

Ariely also lists some «peculiarities» about ownership. The first one is
about things that are priceless for us. More work we put into something, the
more attachment we feel for it. For instance, “Ikea effect». Another
peculiarity is that we start feeling affection for something even before we own
this. For example, Internet auctions. In order to avoid the endowment
effect, the author indicated that people create
an obstruction between the material goods and us. 

 

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