How to Have a Good Day: Harness the Power of Behavioral Science to Transform Your Working Life pdfdrive com

“Let’s Just Stick with What We Know”
Next up is the 
endowment effect
, the fact that we tend to overvalue things we
have—even when they hold no sentimental value. In one famous experiment
(conducted by giants of behavioral economics including Richard Thaler and
Daniel Kahneman) people were given a choice between two gifts of equal value:
a mug or some chocolate. When people were allowed to choose freely between
them, roughly half chose each gift. But when people were first allocated either a
mug or some chocolate, 
then
immediately asked if they wanted to swap, most
refused: 86 percent of those starting with mugs stuck with their mugs, and 90
percent of those who started with chocolate kept their chocolate.
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Why are we so unwilling to let go of what we have? The reason seems rooted
in our 
loss aversion
, the fact that losses loom larger in our minds than gains of
the same size. You might be excited about being given a nice office; if it’s taken
away from you once you have it, studies suggest that your disappointment will
outstrip your original excitement.
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So it’s important for us to know that when
we’re making decisions, we—and others—will instinctively tend to overvalue
the status quo compared with new options, unless we stop to think properly
about how splendid the unfamiliar thing might really be.
“It’s the Only Real Option”

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Finally, if we encounter an option that seems workable, we’ll be inclined to
think it’s perfectly good, without really questioning it. “Someone’s made a
suggestion? It looks okay? Fine by me, then,” says your brain’s automatic
system: “Why on earth would I waste mental energy by asking my deliberate
system to analyze this further or look at al ternatives?” This is known as 
default
bias
, and it’s perhaps the easiest shortcut to spot, because it’s in play anytime
you’ve only got one option on the table. It can be a helpful time-saver if the
decision has no consequences. (“When shall we meet for lunch?” “Twelve-
thirty?” “Great.”) It’s not so helpful if you’re making an important choice, and
the only reason for your course of action is that it’s the only option you were
aware of.