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Behavioral & Everyday

IKEA Effect

Social-cognitive bias

Definition

The tendency to place disproportionately high value on things you helped create, regardless of their objective quality.

Why it happens

Investing labor creates emotional ownership. The effort we put into building something makes us feel more attached to it and overvalue it compared to similar items made by others.

Real-life examples

  • Proudly displaying a poorly assembled bookshelf because you built it yourself.
  • A manager overvaluing their own proposal over a better one from a colleague.
  • Preferring your homemade meal even when a restaurant version tastes better.

How to counter it

  1. Seek external, unbiased feedback on things you've built.
  2. Compare your creation objectively against alternatives you didn't make.
  3. Ask: "Would I value this as highly if someone else had made it?"
  4. Be willing to replace your own work with a better solution.

Quick tips

  • Seek external opinions on things you've created.
  • Compare your creation objectively against alternatives.
  • Ask: 'Would I value this as highly if someone else had made it?'
  • Be open to replacing your work with better solutions.

Sources and further reading