

The IKEA Effect
11 snips Jan 5, 2025
Why do we cherish things we put effort into? The concept known as the IKEA Effect reveals that personal investment boosts our perceived value of creations. This discussion dives into how this affects education and leadership, emphasizing the importance of ownership and engagement. Discover how collaboration can enhance commitment and when our love for our work might cloud our judgment. With practical tips at hand, learn to inspire confidence and teamwork while avoiding the trap of overvaluing just the effort.
AI Snips
Chapters
Books
Transcript
Episode notes
IKEA's Origins
- IKEA founder Ingvar Kamprad started by selling pens and watches.
- He later added furniture and created the flat-pack concept to reduce shipping costs.
The IKEA Effect
- The IKEA Effect describes how we value self-made items more, regardless of their objective quality.
- This is due to cognitive dissonance, where we justify our efforts by increasing perceived value.
Labor of Love
- IKEA builders bid 64% more for their assembled boxes than non-builders.
- This demonstrates the "labor of love" effect, where effort increases perceived worth.