PSYC 309 Quiz: Perspective and Bias.docx
Document Summary
Outline: prospect theory, the idea of loss aversion , the endowment effect , increased valuation for things you own, the ikea effect , increased valuation for things you make, the free effect , increased valuation for things that are free. Rational choice theory: a linear view of gains/losses, value=utility, + positive value associated with this financial gain (linear function) each of us has different slope; steeper function (a) who cares more about money, equivalent change; Norton (2012: two questions to the study, to what extent do people increase their valuation of an object if they assemble it? (does this effect occur to economic evaluation, do you need to complete the project to get the ikea effect, or is it just about the labor involved? (is it just investing energy, or do you have to have the finished product?, study 1a, group1: assembled ikea box.
