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A 2023 survey found that 75% of consumers are more likely to purchase a product they have tried or owned, demonstrating the power of psychological ownership in buying decisions.   What Is Endowment Bias? Endowment bias, often interchangeably called the endowment effect , is a psychological phenomenon where people value something more highly simply because they own it. This bias means that ownership increases the perceived worth of an object or service, regardless of its objective market value. For example, if you buy a coffee mug, you may start to feel that mug is more valuable to you than an identical mug you do not own. This is the endowment effect at play, it’s the human tendency to attach higher value to things once they possess them.   Understanding the Endowment Effect The endowment effect has been studied extensively in behavioral economics and psychology. It shows that ownership creates emotional attachment, increasing perceived value. This effect is st...

According to a recent study, global internet traffic has tripled over the past five years, while energy per byte transmitted has only decreased by about 20%. That means total energy used in data transmission is still rising rapidly.   What Is Jevons Paradox Jevons Paradox is an economic and ecological idea first observed by the English economist William Stanley Jevons in 1865. It says that as technological improvements increase the efficiency with which a resource is used , the overall consumption of that resource can increase , not decrease. That’s because as something becomes more efficient and cheaper to use, people tend to use more of it. Examples to Understand Jevons Paradox Imagine you have a video game controller that uses batteries. Initially, it uses up one battery each hour. Now suppose you invent a super‑controller that uses so little power it only needs one battery every two hours. That seems great, right? But because it lasts longer per battery, you decid...