Endowment Effects Joe Abittan

Endowment Effects

In his book Thinking Fast and Slow, Daniel Kahneman discusses an experiment he helped run to explore the endowment effect. The endowment effect is a cognitive fallacy that helps explain our attachment to things and our unwillingness to part with objects, even when we are offered something greater than the objective value of the the … Continue reading Endowment Effects

Revealed Preference

Revealed Preference – Insights from Government, Healthcare, and Sports

I have written in the past about government budgets as seen through the eyes of people who have studied government and political science. The budget serves as a written calculation that enumerates the government's priorities. In economics terms, we might call this revealed preference, where the government puts a dollar figure down next to the … Continue reading Revealed Preference – Insights from Government, Healthcare, and Sports