Considering the random distribution, you would think that about half the people in the group would have gotten the object they preferred and that the other half would be happy to swap. But in fact, there are very few trades. This phenomenon is called the endowment effect. Once something is given to you, it’s yours. Once it becomes part of your endowment, even after a very few minutes, giving it up will entail a loss. And, as prospect theory tells us, because losses are more bad than gains are good, the mug or pen with which you have been “endowed” is worth more to you than it is to a potential
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