Status Quo Bias

Failure #3 in Strategic Thinking – The Endowment Effect and Status Quo Bias

The idea is that things you own feel more valuable to you than they appear to someone else.  In other words, you would demand a higher price for something you own than you are willing to see it for.  It’s not an uncommon affliction to suffer from.  Have you ever had a garage sale?  How hard was it to price things that you’ve owned for a long time or had some sort of sentimental value?  And how hard is it to forget how much you originally paid for something when writing a number on the little price sticker?  Once you made the decision to sell something, don’t think of how much it is worth to you, but how much someone would likely be willing to pay for it and you’ll have a much more successful sale.