The Endowment Effect: A part of the reason everyone overvalues their own players

Discussion in 'By The Numbers' started by Steerpike, Aug 19, 2018.

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  1. Steerpike

    Steerpike We are never give up

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    https://en.wikipedia.org/wiki/Endowment_effect

    "In psychology and behavioral economics, the endowment effect (also known as divestiture aversion and related to the mere ownership effect in social psychology) is the hypothesis that people ascribe more value to things merely because they own them.
    This is typically illustrated in two ways. In a valuation paradigm, people will tend to pay more to retain something they own than to obtain something they do not own—even when there is no cause for attachment, or even if the item was only obtained minutes ago. In an exchange paradigm, people given a good are reluctant to trade it for another good of similar value. For example, participants first given a Swiss chocolate bar were generally unwilling to trade it for a coffee mug, whereas participants first given the coffee mug were generally unwilling to trade it for the chocolate bar."


    This doesn't seem to exactly fit the subforum, but it seems the most sciency of all the forums.

    Basically I think it's interesting that there is an underlying psychological theory of why fan trade proposals are so terrible and why trades in general are much rarer than they probably out to be.
     
    bossram and sufferer like this.
  2. 1972

    1972 "Craigs on it"

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    Look at how much teams overvalue and overrate first rounders after they draft the player. The 19th overall pick is basically untouchable for even established players.
     
  3. Canadiens1958

    Canadiens1958 Registered User

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    In hockey trading the known for the unknown could be named the Milbury dilemma. Trading a young Roberto Luongo with a proven NHL debut for the potential of an NHL unproven Rick Di Pietro.
     
  4. Critical91

    Critical91 Matthews, roll a Constitution saving throw.

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    Nice post OP, thanks :)

    This definitely feels true. Also, no one wants to be the team that trades Patrick Sharp and then watches him win a bunch of cups as a key cog.
     
  5. The Panther

    The Panther Registered User

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    "No one" wants to? You clearly aren't familiar with Peter Chiarelli....
     
  6. Howie Hodge

    Howie Hodge I Am The Walrus

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    Natural for fans to favor their own players. Our "fandom" often exceeds our players actual worth in most cases.

    The players that fans don't embrace are often proposed as trade chips for other players that they know they would.

    Naturally this incites fans of the proposed trading partner.

    "___ _____ isn't a starting point, he's not being moved" is often a defensive posture to favorites more than a rational process to dispute trade proposals.

    In some cases it is correct, and those players are not likely starting points in a rational, well thought out trade proposal.

    Human nature.
     
    Last edited: Oct 30, 2018

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