The other day, I was writing about evidence that when people get an ordinary object like a mug or a hat, they are more likely to ask a higher price for it and are less likely to sell it at any price offered to them. This is the well-known endowment effect. But I also discussed how people who were asked to write a story about these mugs and how these objects are personally significant to them (even though they got a random mug and were asked to make things up) increased the value in the eyes of the people who told the story about these mugs by 25% to 80%, depending on the circumstances. This implies that stocks that people own are more highly valued by them than by people who don’t own the stock. Furthermore, if these stocks come with a great story (narrative), people will value them even more.
I picked that stock, so it won’t go down
I picked that stock, so it won’t go down
I picked that stock, so it won’t go down
The other day, I was writing about evidence that when people get an ordinary object like a mug or a hat, they are more likely to ask a higher price for it and are less likely to sell it at any price offered to them. This is the well-known endowment effect. But I also discussed how people who were asked to write a story about these mugs and how these objects are personally significant to them (even though they got a random mug and were asked to make things up) increased the value in the eyes of the people who told the story about these mugs by 25% to 80%, depending on the circumstances. This implies that stocks that people own are more highly valued by them than by people who don’t own the stock. Furthermore, if these stocks come with a great story (narrative), people will value them even more.