The IKEA effect: why do we like possessions we had a hand in making?
This article was originally published in January 2020 and was updated in December 2025.
A quick note before we begin! Most psychology research has been done on white, wealthy, educated, politically democratic people in Western countries, which means that a lot of what we think we know about human behaviour could well be wrong. The answers that I give to the question above are probably not applicable to people who don’t live in a culture like mine – the United Kingdom – which is focused on individual rights and goals rather than collective rights and goals. In fact, even the question may not be meaningful in some cultures. So, while I’ve focused on my own experiences for this blog, I don’t want you to get the false impression that my experiences and ways of thinking are common to all humans.
OK, caveat complete. Let’s get into it.
Asking why we like the things we own might seem like a strange question. An obvious answer to the question is that we’ve made some effort to acquire those items like paying for them, bartering for them or creating them. We wouldn’t have made the effort to get them if we didn’t like them!
Now think about your favourite stuffed toy from when you were a child.
Imagine I’ve got another toy here that’s absolutely identical in every respect to your childhood toy, except it’s new. Yes, I know that’s probably not possible. Let’s just imagine that I paid a wizard to make it.
This wizard.
OK – will you swap your existing toy for this brand new, objectively better toy? I certainly wouldn’t swap my childhood teddy bear, Barrington, for an identical bear. If you belong to an individualistic culture like mine, I bet you wouldn’t swap your childhood stuffed toy either. Though perhaps to a lesser extent, this is likely also true of other objects you own. Let’s look at why.
Teddy bear psychoeconomics
The technical name for valuing the things you own more than identical things you don’t own is the endowment effect. There are lots of theories about why the endowment effect exists, including:
Loss aversion: we feel more loss at losing an object we own than we feel gain at gaining an object we don’t own. In teddy bear terms, that means gaining a new Barrington wouldn’t make up for losing the existing Barrington.
Motivated taste change: we tend to think positively about ourselves, and we may also extend that positive bias to things we own. I like existing Barrington more than new Barrington because existing Barrington belongs to me, and I like me.
Query theory: owners focus on the loss incurred by giving up an item, while sellers focus on the loss incurred by buying an item. That’s a double-whammy – I don’t want to lose existing Barrington both because that’s a loss in itself and because I would lose him by ‘buying’ the new Barrington.
Attachment: being near a thing or thinking about a thing causes us to become more attached to it. I’ve spent a lot of time playing with and near existing Barrington, so I feel a lot of affection for him. Conversely, I’ve not spent any time with new Barrington, so I don’t feel any affection for him.
No-one’s quite sure exactly which explanation is correct, if any, which partly explains why there are lots of theories. However, it seems like the current best explanation is to do with whether the options of keeping the existing item or acquiring the new item are presented as losses or gains, something called the framing effect. When we own an item, we tend to focus on the good things about it, which means that we view exchanging it for another item as a loss.
But we don’t like all the things we own the same amount, right? If I absolutely had to, I could probably rank the things I own in a rough order from “will never part with” to “who cares”. Some of what determines these ranks is rational, and some is not – my laptop is high up on the list of things I’d keep because it is a good fit for what I need in terms of weight, battery life, and processing speed, but it’s also something that my partner gave to me so I am attached to it for sentimental reasons, too.
A more inexplicable possession is this flyer from an Amsterdam club I probably never went to. It’s a pun about house music and it makes me laugh, but still…
I’d like to think the reasons for me to prefer one possession over the other are clear to me, but honestly, that’s probably not the case. Let’s have a look at one of the reasons that was lurking in my subconscious until I started reading about why I like the things I own…
The IKEA effect
I imagine quite a lot of people around the world have a flat-pack furniture item in their home which they have constructed themselves. I also imagine a lot of people did not enjoy the process of building the item.
This picture fills me with joy, because I like building flat-pack furniture. I am aware this is unusual.
Despite the toil involved in building a BILLY or a KALLAX or a TROFAST, IKEA is very successful. Amazingly, part of that success is because people like things more if they’ve had a hand in making them. This liking applies to items ranging from storage boxes to Lego kits to loom bands.
It’s not about the time you spend making the item, because the IKEA effect disappears if you build and then unbuild an item. It’s not about being able to customise the item (though that does help), because the IKEA effect is there even if no customisation has happened. Rather, it’s the combination of the effort and the successful completion of the task that makes us like objects we’ve helped to make.
We’ve also learned over our lifetimes that high effort might lead to high rewards (I say ‘might’ because we do not live in a meritocracy, or an effort-ocracy, but it does happen for at least some people). This accumulated experience eventually means the feeling of making an effort can itself be rewarding. Some people also genuinely enjoy effort for its own sake, regardless of whether the effort leads to success. Lastly, since we like some handmade items more than machine-made items because they ‘contain love’, this feeling could also be playing a role.
Disrupting the IKEA effect
If you’re like me, you might be mad at the idea that a company can trick you into liking something more by giving you a hand in building it and then charging you a premium – I’m looking at you, Build-a-Bear. Let’s think about how we can give ourselves the option of not experiencing the IKEA effect!
When we successfully make something, we often feel a sense of pride in our achievement, whether we keep that to ourselves or show the whole world what we’ve done. This feeling of pride is involved in the IKEA effect – specifically, the feeling of competence rather than the good mood we tend to be in after successfully doing something. Amazingly, this link means that if someone gives us the impression that we’re incompetent at maths, we’re more likely to want to assemble a bookshelf! Fortunately, the same research also showed it’s possible to lessen the IKEA effect through a simple exercise of thinking about what values you hold most strongly (like kindness, honesty, justice…) and then writing about a time when your most strongly-held value was important to you.
Now we now how to disrupt it, let’s think about how to use it to our benefit…
Using the IKEA effect
Having spent some time around small children, I know it’s often a struggle to get them to eat a varied diet. If this is a problem you’re facing at the moment, then the IKEA effect could be of help to you. Ask a child to help you make something you want them to eat, and they will probably eat more of it than they will of an identical thing that someone else has make!
However, some warnings apply here. First, from the study itself: kids don’t seem to like the food any more if they’ve made it, they’ll just eat more of it. Secondly, it’s unlikely to work with kids younger than about 5 years old. And finally, researchers have found that the IKEA effect for food doesn’t show up every time they run this experiment, so you might find it doesn’t work on your child.
