People exhibit an "illusion of courage" when predicting their own behavior in embarrassing situations. In three experiments, participants overestimated their own willingness to engage in embarrassing public performances in exchange for money when those performances were psychologically distant:...

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...