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The endowment effect and used game sales

Jamie Madigan writes:

"A few years ago I decided that I really wanted a fancy new camera so I could properly indulge my budding interest in photography. Problem was, I didn't have the cash. But what I did have was a closet literally full of old games I hadn't played in years and would probably never play again. I think you can guess where this is going.

At first, I was extremely disappointed in eBay auctions I set up. When I set minimum reserve prices1 the games didn't sell and when I didn't set reserves I got what I considered paltry sums. Why wasn't anyone willing to pay what this stuff was worth to me? The fools! Many a person trading used games to places like GameStop probably ask the same question: how come it never seems like they offer a fair price?"

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