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New research shows people experience the ‘endowment effect’ of valuing an object more when they can touch it, even in virtual settings.

New research shows people experience the ‘endowment effect’ of valuing an object more when they can touch it, even in virtual settings.

Coase's theorem explains one way of solving market failure with regards to externalities. It states that the problem of externalities can be solved with...

Exponentially by doing it over and over again. it's the old pull off the band-aid or rip it off a little bit at a time. >> which way do you do it? >> i just rip it off. >> that's your theory with this right here. problem is many americans are involved in what they call the endowment effect which is -- >> steve, once you get something, you don't want to give it up. even if you get -- even if you're going to get something that is of greater value, youment -- want more and much more. >> you don't want to give it up or take less. >> fascinating article, thanks for bringing it us to our attention. ...

That it's your belief and based on behavioral economics that we would better to do this in one full swoop, do all the cuts as opposed to the small increments. why? >> death by 1,000 cuts. there's going to be misery and there's going to be civil unrest regardless any time we make a cut but if we make cut after cut after cut, it will just inflame people more and more and we will see civil unrest unlike anything we've seen in our lifetime. >> right, and we've gotten a little taste of civil unrest in wisconsin and ohio as well. we see it internationally. when you look at the percentage of debt and...