Because the study used real commodities and real money, the results hold implications for everyday decisions, as well as implications for the development of theory. For example, economic theories of spending may benefit from incorporating psychological theories—specifically, theories of emotion and the self—into their models.

Framing matters a lot. Spending for the benefit of the group feels a lot better than spending solely for yourself. People ideally want both.

Today, it is hard not to notice the prevalence of equity culture. Every employee optimizes their stocks and options. People frequently move between companies to build a portfolio of equities. Employees of successful startups want to become angel investors. Second-year MBAs want to be founders or VCs. Nobody wants to miss out on the next equity... See more

Endowment effect

Valuing an object more, only because you possess it.

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We are emotionally attached to things that we own. It makes sense: There’s an emotional investment in having made the decision, in shifting or cementing your identify as “a person who would have this object,” and how you believe that ownership will be perceived by others.... See more