You were looking for the Endowment Effect (http://en.wikipedia.org/wiki/Endowment_effect).
Yeap, that's it! Thanks bud.
Re:Stuff Costs More Than You Think
by joshkaufman on Wednesday October 20, 2010 @12:13AM
(#1809947)
Another related concept: Total Cost of Ownership - http://en.wikipedia.org/wiki/Total_cost_of_ownership
Isn't it obvious in this example that selling the hat is a waste of time and potentially money? Much better to tell the well-dressed guy to go and haggle himself, so HE's the one taking on the risk of not getting the price down to $10 again, and HE's the one spending his time. I mean, you just bought a hat, why sell it for no profit?
The method that he uses to elicit the values is extremely interesting. He locks the items in storage to realize their true value to him.
In the process he discovers a major economic principle. I can't remember that exact term used to describe the situation, but I think it deals with Willingness To Accept (http://en.wikipedia.org/wiki/Willingness_to_accept). In summary, the principle states that one tends to increase the value placed on a good if he owns it. For example, you bargain with a salesman for a hat. He brings the price down to $10. A well-dressed man sees you walking out of the store with your newly purchased hat. He likes it, so he makes you an offer for $10. You will likely not accept because the hat is now worth more to you than just $10.
Overall, the article itself is presented in a motivating fashion shedding some light on these economic issues.