Trading experience and endowment effect

Based on trading experiments involving functional MRI scans of 45 people ages 20-58, researchers report that, when compared to inexperienced traders, experienced traders and volunteers trained to gain selling experience exhibit reduced activation in the right anterior insula, a brain region implicated in loss aversion, when engaged in a sale, suggesting that trading experience may mitigate the endowment effect, an economic bias in which people demand a price for an item that is higher than that they would themselves pay to purchase the item. - Read at PNAS.org

Article #15-19853: “Trading experience modulates anterior insula to reduce the endowment effect,” by Lester C.P. Tong et al.