The endowment effect in behavioural economics

Abstract

Summing up, we can observe that with the transformation of the economic structure and the growth of the spiritual and cultural needs of people, behavioural economics began to develop rapidly. Many scientists believe that due to the constant abundance of goods, the value orientation of people affects the sale of goods, therefore, in the modern economy, the phenomenon of “dematerialization” and “individualization” often occurs. These new developments challenge traditional economic theories, and behavioural economics itself has become a powerful complement to them. In addition, due In addition, due to the uncertainty of people in decision-making, it can be difficult to achieve the ideal calculation in the hypothesis of “rational economic person”, and the endowment effect is important in the actual pplication process in the field of behavioural economics.