The Endowment Effect is the section I finished today in Thinking Fast and Slow, and it talks about loss aversion (similar to the section I’m reading in Influence).
We are more likely to place a higher value on something we already have in our possession than one we do not yet have. We will also do more to avoid loss than we will to gain.
This is fascinating and very insightful to me. It explains why quotes like “I can do anything I set my mind to if I’m willing to pay the price for greatness” (Tom Bilyeu) will likely be so challenging for many people to achieve.
Paying the price for greatness, in most cases for most people, will appear as a loss, something we tend to avoid at all costs. How to go about flipping that? Is it the priming exercise by Tony Robbins where you prime yourself to see what you will gain by making the change/paying the price?
I'm unsure if any of this ties together yet, but the section I’m reading in The Tipping Point concerns how tipping point epidemics happen and how context is so important. His big example was The Broken Window Theory, which is powerful and fascinating. It ties in nicely with the quote, “How you do anything is how you do everything”(Martha Beck). Looking at the business, ensuring that our actions reflect our core values, both internally and externally.
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