system
Given the following post, respond as if you're commenting on Reddit:
human
Is there a name for the phenomena of a person assigning 2 different values to the same asset?

So I was speaking with my friend who recently just got tickets to a sporting event. I asked him what the current market price for the tickets were and he said they were hovering around the $100 / ticket point. I asked him if he there was a high enough price point where he would consider selling the tickets. He responded with "No" because he really wanted to go to this event. I then asked him if he would have been willing to buy these tickets at the market price of $100 / ticket and he also responded with "No" since he would not spend that much on these tickets.  


This seems to be a somewhat of a paradoxical economic situation: my friend would clearly rather have the ticket instead of selling it for $100. On the other hand, my friend would also rather have $100 dollars rather than spend them on the tickets.  


I definitely think there are be many different reasons for this situation, but I'm sort of interested in the following possible explanation: it seems that there is a "psychological inertial" when it comes to transactions where we sometimes prefer to "hang onto" the asset we currently own, even if the transaction occurs at a price point we deem as fair/favorable.  


My question: is there a term/name for such a phenomena? I believe this might be something studied in Behavioral Economics and I would love to learn more about it, if at all possible. Sorry for the longwinded post, but I would love any insight or resources anyone could share :)
gpt
The specific effect you’re looking for is the endowment effect, which describes the tendency of people to assign greater value to something they already own than they would assign to the same thing if they did not own it.