We over value the things we have, overreact when we can't have something anymore, and resist change. In other words, we hate loss. But because loss is frequent and inevitable, our hatred of it guarantees that we suffer. Let's take a look at the psychological mechanisms that make us act this way. The Endowment Effect Suppose that Nathan and Mae are two students at the same school. It is randomly determined that Mae will be given a school mug, which she gets to keep. Mae then writes down the le...