People tend to value objects more highly simply because they own them. Prior research indicates that people underestimate the impact of this endowment effect on both their own and other people's preferences. We show that underestimation of the endowment effect can lead to suboptimal behavior in...

People tend to value objects more simply because they own them. Prior research indicates that people underestimate the impact of this endowment effect on both their own and other people’s preferences.We show that underestimating the endowment effect and hence owners’ selling prices can lead...

Social exchange theories posit that people engage in diverse forms of exchange to enhance their own interests. Knowing whom to exchange with and what to exchange, however, requires an understanding of other people's wants and needs. Gaining such an understanding requires skill at perspective...

In 5 studies, the authors examined people's perceptions of the endowment effect, or the tendency to value an object more once one owns it. In the 1st 2 studies, the authors documented egocentric empathy gaps between owners and buyers regarding the endowment effect: Both owners and buyers...

Purpose To thrive, any individual, organization, or society needs to separate true from false expertise. This chapter provides a selective review of research examining self and social judgments of human capital – that is, expertise, knowledge, and skill. In particular, it focuses on the...