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I write because I talk, excessively.
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“We waste time looking for the perfect lover, instead of creating the perfect love.”


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4:59 PM
Wednesday, November 10, 2010
More on The Endowment Effect
The Endowment Effect basically describes the phenomenon whereby the value of an object is augmented when we possess it: when it becomes part of our endowment. It is the outcome of 2 interplaying effects: loss aversion and status quo bias. Loss aversion occurs when the disutility of giving up object exceeds the utility in acquiring it. Thus the status quo bias.



Applying this to the context of relationships, I feel that the endowment effect usually kicks in after entering the relationship. We want to know that we have made the right choice of partner, we need a kind of assurance and justification, therefore we begin to see our partners in a different light, suddenly he/she cannot be compared to anyone else just because he is ideal. It is also because of this effect that we cease to consider new options, because what we have must be better. The endowment effect is said to be irrational and defies economic theories; love is irrational, too. The problem here is, are we in love with an imaginary person? Have you permitted yourself to develop a grandiose concept of your lover and be holding on to what never existed? So you might feel that you shall never love another with the same kind of intensity again, because he is irreplaceable, but if you set aside your feelings and bring in rationality, he is really much more ordinary than you ever realised.