endowment-effectlisted

Activate when: seller is asking way more than buyers will pay; a founder or homeowner insists their asset is worth far more than market comps; a team refuses to cut a feature they built; a free-trial cancellation flow has more friction than signup; someone says 'I've put too much into this to sell for that.' Do NOT activate when: the valuation gap is explained by genuine information asymmetry the seller actually has; the asset is a pure commodity with a transparent live market price (endowment effect is weak when reference prices are salient).
deciqAI/knowledge-skills · ★ 0 · AI & Automation · score 72

Install: claude install-skill deciqAI/knowledge-skills

# Endowment Effect ## Overview People demand roughly 2× more to give up something they own than they would pay to acquire the identical thing — purely because they own it. Ownership converts a transaction from a potential gain into a potential loss, and losses loom ~2× larger than gains (prospect theory). The effect kicks in within 30 seconds of possession; customization and personalization amplify it. Two operating directions: **Leverage** — trigger buyer endowment via free trials, personalization, and data import to raise willingness-to-pay. **Counteract** — in M&A or negotiation, identify the seller's endowment premium and bridge it with earnouts, neutral reference prices, and exchange framing. Composes with [`loss-aversion-prospect-theory`](../loss-aversion-prospect-theory/SKILL.md), [`status-quo-bias`](../status-quo-bias/SKILL.md), [`anchoring`](../anchoring/SKILL.md), [`batna-zopa`](../batna-zopa/SKILL.md). ## When to Use - Pricing a product, subscription, or asset and needing to understand buyer willingness-to-pay dynamics - Designing a free-trial or onboarding flow and deciding how much personalization to front-load - Negotiating an acquisition where the seller's asking price significantly exceeds comparables - Advising a founder or asset owner on why their valuation differs from market offers - Structuring earnouts or deferred consideration to bridge a valuation gap - Detecting why a team is reluctant to abandon a feature or strategy they built (IKEA effect var