Effects of Ownership. It refers to valuing what one owns from one’s own perspective. The competition to buy tickets for the Duke University basketball game was very fierce, so the university decided to distribute tickets through a lottery. Some students applied for the same ticket, and among them, the winning students and dropout students were asked about their valuations: the winners were asked how much they would sell the ticket for, while the dropout students were asked how much they would buy it for. The lowest selling price from the winners was $2,410, whereas the highest buying price from the dropout students was $170. The difference was substantial. When asked why they thought so, ticket holders considered the value of giving up the ticket, while ticket buyers considered the value of exchanging cash for it. In other words, possession represented the benefit of sacrificing something else. Value judgments depend on what we own. - Joseph’s “just my thoughts”
Founded in 1991, the American craft beer company, New Belgium Brewing Company, is unique because its employees hold all the shares. Since 1996, the founding couples have distributed 10% of their shares to employees annually as incentives, and they have now completely transformed the company into an employee-owned entity. Currently, the founders hold no shares in the company. Furthermore, all employees receive financial training to enhance their management mindset. Training in financial statements, which includes everyone from minor clerks to executives, is standard practice for the company. Running a company without the ability to read financial statements is like signing a contract without understanding the terms. - Joseph’s “just my thoughts”