Question: Describe the mug experiment by Daniel Kahneman, Jack Knetsch & Richard Thaler, which explained the endowment effect. Describe the bias that causes the endowment effect.

Describe the mug experiment by Daniel Kahneman, Jack Knetsch & Richard Thaler, which explained the endowment effect. Describe the bias that causes the endowment effect. Explain the importance of the endowment effect aside from the coffee mugs.

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