Tag: ikea

  • Cake Mixes, the IKEA Effect, and the Psychology of Effort

    In the index of cognitive biases (previously), I came across the IKEA effect: why do we place disproportionately high value on things we helped to create? Similar to the endowment effect (our tendency to overvalue our own belongings), the IKEA effect explains why we’re willing to pay a significant premium (over 60%!) for products that…