How beliefs about self-creation inflate value in the human brain

Abstract

Humans have a tendency to overvalue their own ideas and creations. Understanding how these errors in judgement emerge is important for explaining suboptimal decisions, as when individuals and groups choose self-created alternatives over superior or equal ones. We show that such overvaluation is a reconstructive process that emerges when participants believe they have created an item, regardless of whether this belief is true or false. This overvaluation is observed both when false beliefs of self-creation are elicited (Experiment 1) or implanted (Experiment 2). Using brain imaging data we highlight the brain processes mediating an interaction between value and belief of self-creation. Specifically, following the creation manipulation there is an increased functional connectivity during valuation between the right caudate nucleus, where we show BOLD activity correlated with subjective value, and the left amygdala, where we show BOLD activity is linked to subjective belief. Our study highlights psychological and neurobiological processes through which false beliefs alter human valuation and in doing so throw light on a common source of error in judgements of value.

The Secret of Self-Made: The Potential of Different Types of Consumer Participation for Product Attachment and Commercial Value

“…As repeatedly shown, consumers tend to overvalue their own product creations and are willing to pay more for self-made products (Norton et al 2012;Franke et al 2010;Koster et al 2015). Thus, irrespective of objective evaluation, the consumers' involvement into the production process seems to add special value to the final product.…”

“…On the other hand, too much effort may not be what consumers actually want and need to feel positive about the product and themselves. If they just need the idea of self-made, as suggested by the studies by Koster et al (2015), where false beliefs of self-creation led to an overvaluation of the product, the investment of mental effort in self-design might be enough and possibly even more beneficial, given that the result does not depend on the consumer's personal technical skills. In essence, a central question is whether physical effort, invested in the realization stage, adds extra value beyond the mental effort invested in the design stage.…”

“…The so-called "I designed it myself effect" describes that, regardless of the actual preference fit, the feelings of having designed a product themselves creates economic value for consumers (Franke et al 2010). Interestingly, such overvaluation emerges even when false beliefs of self-creation are elicited, i.e., when participants believe they have created an item, regardless of whether this belief is true or false (Koster et al 2015). However, Schreier (2006) argues, that independent from the pride of having created something on their own and the positive "pride of authorship effect" on product value, consumers may take experiential benefits from the actual process of self-design (so-called "process benefits").…”