People tend to value objects more simply because they own them. Prior research indicates that people underestimate the impact of this endowment effect on both their own and other people’s preferences.We show that underestimating the endowment effect and hence owners’ selling prices can lead...

This confusion about the activities of scientists and clinicians is reflected in booksellers’ varying decisions to shelve (often on opposite ends of the bookstore) Daniel Gilbert’s Stumbling on happiness under ‘‘Science,’’ ‘‘Cognitive Science,’’ ‘‘Psychology and...

In 5 studies, the authors examined people's perceptions of the endowment effect, or the tendency to value an object more once one owns it. In the 1st 2 studies, the authors documented egocentric empathy gaps between owners and buyers regarding the endowment effect: Both owners and buyers...

The results of six experiments indicate that emotional intensity reduces perceived psychological distance. People who described events emotionally rather than neutrally perceived those events as less psychologically distant, including embarrassing autobiographical events (Experiment 1), past and...

The authors review research on judgments of random and nonrandom sequences involving binary events with a focus on studies documenting gambler's fallacy and hot hand beliefs. The domains of judgment include random devices, births, lotteries, sports performances, stock prices, and others. After...

Recent developments in the field of artificial intelligence and data analytics are facilitating the automation of some consumer chores (e.g., in smart homes and in self-driving cars) and allow the emergence of big-data-driven, micro-targeting marketing practices (e.g., personalized content...