Endowment effect
nounen·dow·ment ef·fectpronounced en-DOW-mənt ə-FEKT
Last reviewed 16 April 2026
What does the noun Endowment effect mean?
A cognitive bias where owning something causes you to value it more highly than you would if you did not own it. In experiments, sellers consistently demand roughly twice what buyers will pay for the same item.
How the noun Endowment effect is used
After spending weeks inspecting a house and imagining their furniture in it, the buyers experienced the endowment effect and struggled to walk away despite the high price.
Related words
Cite this entry
MLA citation: "Endowment effect." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/endowment-effect. Accessed 29 May 2026.
Chicago citation: How to Property. "Endowment effect." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/endowment-effect.
APA citation: How to Property. (2026, April 16). Endowment effect. https://howtoproperty.com.au/definitions/endowment-effect