As soon as Di Xiaoxuan rushed back to the F19 Space City Lord's Mansion of the F19 Space Battle City, he immediately found Shi Yituo and allocated a contribution point to Shi Yituo, so that he could pay the immediate family members of the ten mecha divisions who died in the battle as a pension, and arrange for the optical division to give priority to the immediate family members of the ten mecha divisions.

Shi Yituo gritted his teeth and whispered to Tenggermande's ancestors, these ten mecha masters are Shi Yituo's most relied on bodyguards, but they died tragically in the hands of the despicable Tenggermande's little minions, they all left a message before they died to express their regrets about this escort action, Di Xiaoxuan is a hero worthy of their death!

Shi Yituo had two lines of tears on his face, and no one with his guards laughed at Shi Yituo, but felt that Shi Yituo was particularly like a gentleman today, and they all rubbed their fists and palms, shouting to avenge the sacrificed brother!

One of the guards reminded: "Tengelmande, this bastard, is still cheating on our Terran resistance in the name of the rebels, and we will tear off his painting skin so that the Terran compatriots can see his true face!" Who is the traitor of the Terrans! ”

Shi Yituo nodded silently, choked up and said: "Little Liuzi, you publish the images and audios they sent back to the exchange forum, and expose them to Tengemande, so as not to cause more harm to the Terran rebels!" ”

Di Xiaoxuan was mourning in silence for these ten mecha masters, and suddenly received an encrypted long communication from his father Di Shengtian, which made Di Xiaoxuan almost take off his jaw in shock, if it weren't for the eldest princess of Jasmine Mei Shengsheng to destroy the three Terran scum, that super gene virus would really be developed and harm the Terran compatriots, and it is unknown whether the Zhuge family can research the antidote at that time!

Philip is a Terran traitor at the level of the commander of the defense zone, according to the information obtained by the Elder Princess Jasmine, Philip not only colluded with the Midoch Clan, but also colluded with the Mayana Clan, and what is even more terrifying is that this Philip Ler is just a clone, it is difficult to determine which one is the real body, and at least one of the real bodies or clones has the strength of the Mildoch Patriarch who is not weaker than the Mildoch Patriarch, and even has the ability to fight against the Elder Princess Jasmine Beauty, how can such a character be a Terran! His identity and purpose are full of mysteries!

Di Xiaoxuan was a little worried about the messy situation, and she didn't know what to do with the tasks assigned by her father! It is a matter of confidentiality, and I can't ask Ding Yi, Wei Mei, and Ren Chenggong for advice on the operation plan, and quietly read the interpretation of the business war left by the guardian of Song Taiping: There is an ancient saying in our homeland, there are people outside the world, and there is a sky outside the sky! The great economy that can realize the economic integration of the universe is not necessarily the Furen Group (the predecessor of the Terran Alliance Economy), never underestimate the seemingly simple civilians of other races and our Terran race, according to the theory of large numbers, the masters who surpass me in the future will be born among them!

Our gaze is limited to this universe, because the scientific and technological level of our universe and the strongest strength of cultivators cannot extend to a wider star field, outside of our universe, there will be other universes, after countless years of development, there will be fusion between universes, bloody conflicts and business war confrontations, which will be raised to new heights. I can't imagine what the future will be like, and I can't describe to you what kind of realm the business is endless!

Di Xiaoxuan also found a record from the manuscript of the Song Taiping Guardian Shang Zhan that his father Di Shengtian copied to him:

Discuss how to spend money on the broom self-cherished.

Which is greater, the joy of having it, or the pain of losing it?

What kind of mentality is the fear of trouble?

Why are the poor poorer and the rich richer?

These three seemingly unpopular problems actually hide the same psychological effect behind them - the endowment effect.

This theory was first proposed by Professor Richard Thaler, the founder of behavioral economics and one of the most influential scholars in the field of decision psychology.

To understand the endowment effect, we must first understand another, more fundamental concept in behavioral economics, loss aversion.

Loss aversion: Rather than get it, it doesn't want to lose.

If you work very hard and work overtime every night, in order to encourage you, the leader will make a special report to fight for a salary increase for you.

However, at the end of the year, you have worked hard for a year, but you have gained nothing. You must be very disappointed.

In fact, you have nothing to lose! There are many people who work hard but don't get a raise, why are others not as disappointed as you? Why is it that after an imaginary period of gain and loss, you are in a worse mood than when nothing happened?

Here's how economists explain it: Suppose you went out to work this morning with a satisfaction score of 100, and suddenly, you picked up a large wallet with 100 yuan in it, and the satisfaction value quickly rose by 50% to 150.

But you are very happy and sad, you are late, your salary will be deducted by 100 yuan, and your satisfaction value will drop by 50% to 75.

One gain and one loss, the money does not change at all, but the satisfaction value changes from 100 to 75.

Some people will say that there is a problem with this calculation, why is the satisfaction value not plus or minus a certain value, if it is calculated like that, there will be no change in the gain and loss.

This brings us to the point.

It's like picking up a hundred dollars, a millionaire and a beggar feel completely different, and what we have is the starting point of our value judgment. Therefore, the change in the satisfaction value is not the addition or subtraction of a certain value, but the multiplication and division of a ratio.

It's like if we take 10,000 yuan to speculate in stocks, lose 10%, and make a profit of 10%, it becomes 9900 (vice versa), and we lose 100 yuan out of thin air.

The above example illustrates one of the most important theories in the psychology of investment decision-making:

The joy of getting something is usually less than the pain of losing something, so we don't like to take risks, and would rather give up the happiness we have gained to maintain the status quo than suffer the pain of loss.

Life is so miserable: the joy of having a relationship must be less than the pain of falling out of love; The joy of getting a child must be less than the pain of losing it.

That's why Lao Zhuang's philosophy tells us not to pursue those things that are valuable......

Far from it. As we said earlier, the premise of loss aversion is the fear of losing something after owning something, and it implies the assumption that your value judgment of what you have is often irrational.

Richard Thaler's endowment effect proves this hypothesis.

The "endowment effect" of self-cherishing broom

If you have two job offers at the same time, all other things will be the same, the only difference is that one job pays $1,000 more, and the other has an extra 5 days of annual leave per year.

You feel that both jobs are acceptable, and in economic terms, a thousand dollars of salary and five days of annual leave are equally effective.

One of them calls you first, and you gladly accept it and start to look forward to life after the job change. After a while, another one called you as well. At this point, there is a good chance that you will refuse.

Although a few minutes ago, you thought there was no difference between the two, but when you accepted your first job, the utility of the $100 salary you already had increased and was greater than the five days of annual leave you didn't get.

Professor Richard Thaler says that this is the endowment effect: when you own something, you value it more than if you didn't have it.

The endowment effect is caused by loss aversion, because the pain of losing this 1,000 yuan salary is greater than the joy of getting 1,000 yuan (equivalent to five days of annual leave).

The student next to him began to interject, what kind of theory is this, the Chinese people summarized it into an idiom more than a thousand years ago: self-cherishing of the broom.

Professor Richard Thaler asks rhetorically: Did the broom tell you why this change has happened?

The student thought for a moment and said, "Actually, it's not that I cherish myself, it's just that I'm afraid of trouble and don't want to change my decision." ”

Professor Richard Thaler, after all, is a scholar and likes to chase after him: "What does it mean to be in trouble?" Does it refer to the cost of choice? Is it a big price for us to make a phone call and say, 'I accepted another job'? ”

In fact, when the endowment effect makes us make irrational choices, the fear of trouble is just an excuse.

If you don't understand that not wanting to change the status quo is an irrational behavior due to the endowment effect, but only understand that you are afraid of trouble, then when the other party gives you another day of annual leave in order to win you, you are likely to refuse.

To put this example into a twist, when faced with a job offer with a salary increase of more than 30%, you will not hesitate to choose to change jobs; But if it's only a 10% increase, you'll usually have to think about the cost of moving ship.

However, due to the endowment effect, we overestimate the value of the current work and thus inflate the cost of job hopping.

So, how much does it actually cost to change jobs?

It takes twice the happiness gained to offset the pain of loss

Professor Richard Thaler did an experiment to illustrate the endowment effect.

He divided the students into three groups, the first group was tasked with selling a coffee cup, the second group was tasked with buying a coffee cup from a seller, and the third group was free to choose to own a cup or get a sum of money of the same value, and then asked the three groups to mark the price of the coffee cup.

As a result, the median valuation for the second group of buyers was $2.87, which was very close to the third group of freely available student estimates of $3.12.

The median seller estimate was $7.12, which was twice as high. Once again, it proves the endowment effect of overestimating what you have.

In many experiments by economists such as Richard Thaler, a ratio of about 2:1 has been obtained, and the loss aversion coefficient of the endowment effect is obtained, and the pain of the same loss is offset by twice the happiness gained.

To explain the previous example with this coefficient, when you agree to a job that is 1,000 yuan higher, the other company will have to give you an extra 8 days of annual leave (instead of the original 5 days) to make you change your mind.

If a 10% increase in salary makes you hesitate (meaning that the two jobs are equally effective), then the cost of changing jobs is actually only 5% of your salary.

However, someone asked an interesting question: when I took out 500 yuan from my wallet and bought a pair of shoes with a price tag of 500 yuan, why didn't I have an endowment effect on the banknotes I owned, and why didn't the seller have an endowment effect on his shoes?

Why are the poor poorer and the rich richer?

Richard Thaler explained it this way: Because you know that money is spent and merchants know that goods are sold for sale, so there is no endowment effect.

On the other hand, when you have a sense of ownership of money, you can't rationally face spending money.

The money of the poor is used to make ends meet, so the poor often have a sense of ownership of money, which has an endowment effect - the pain of spending 100 yuan is greater than the happiness of getting 100 yuan of goods; The things I like are out of stock, and I am relieved.

On the contrary, the rich are used to make money, constantly going in and out of the cycle, and there will be no psychological burden of endowment effect.

Money is a thing that depreciates rapidly once it stops flowing. So the world tends to be poorer for the poor and richer for the rich.

Similarly, in the eyes of a novice in business, goods and money are two different things, and commodities that do not sell well, and if you let him give a discount, it is like cutting your own flesh.

But in the eyes of business veterans, they are all different forms of wealth. Therefore, they pay more attention to the speed of capital turnover, and do not hesitate when it is time to liquidate and sell.

As the old saying goes: money is only worth when it's spent.

The ass determines the irrational judgment of the head

"Ask yourself, if you were someone else, would you be willing to work with yourself?"

"I can't even think about it, how can there be such a good blessing......"

Although the above is a joke, the endowment effect does make us make a lot of irrational judgments about the butt decision head.

Have you ever thought that so-and-so is not as capable as you, but promotions and raises are always faster than you, and the default is that person will be a sycophant?

Do you feel aggrieved that your leader used someone else's plan and let your week's efforts go to waste, and you think that your plan is obviously better than others, and the leader is blind?

Are we overestimating our role when we are in the role of seller? Are we too stingy when we are in the role of buyer?

Knowing the existence of the endowment effect, your judgment should be more objective and your mentality should be more mature.