Length-of-Ownership Effect

Length-of-Ownership Effect

Reviewed by Faisal Zaidi

The finding that the value people put on an object rises with how long they have owned it.

What it is

In four studies, valuation rose with length of ownership, and for objects no longer owned, earlier ownership raised valuation in relation to how long the object had been held before it was lost. It is drawn from work by Michal Strahilevitz and George Loewenstein (1998).

In effect

In the article on keeping things meant to be returned, each week an item sits at home adds to its value in the owner's eyes.

What it does not say

It describes how people value objects in laboratory studies, not decisions to keep returned goods. It does not say the effect is the same for every object or every owner.

Sources

  1. Strahilevitz, M. A., & Loewenstein, G. (1998). The effect of ownership history on the valuation of objects. Journal of Consumer Research, 25(3), 276-289.