Harvard Business Review has an interesting article about how people tend to value creations that they’ve labored over more than those that they haven’t.
When people construct products themselves, from bookshelves to Build-a-Bears, they come to overvalue their (often poorly made) creations. We call this phenomenon the IKEA effect, in honor of the wildly successful Swedish manufacturer whose products typically arrive with some assembly required.
In one of our studies we asked people to fold origami and then to bid on their own creations along with other people’s. They were consistently willing to pay more for their own origami. In fact, they were so enamored of their amateurish creations that they valued them as highly as origami made by experts.
The article goes on to state that the effect extends to office politics, and managers might see ideas and processes that originate with them as more valuable than those that come from outside.
It contributes to the sunk cost effect, whereby managers continue to devote resources to (sometimes failing) projects in which they have invested their labor, and to the not-invented-here syndrome, whereby they discount good ideas developed elsewhere in favor of their (sometimes inferior) internally developed ideas.
Personally, I’d call this the “Mo” effect, but that’s neither here nor there.
Either way, it’s an interesting argument, and links to the psychological effect of people being blind to their own imperfections while criticizing those same imperfections in others. People seem wired to put worth in something where they understand the labor “cost” involved, whether that cost be monetary, work hours, or otherwise. I think that’s why people put a high price on art (or any creative work, really); it’s something that the man-on-the-street feels incapable of without considerable time and effort on their behalves (whether actually true or not).
How do you feel about DIY projects that you’ve put your heart and soul into? How about projects that you’ve seen as being similar to your own? My personal feeling is to put great worth in artistic works not because I’m incapable, but because I DO understand the labor cost, having produced artwork myself. On the other hand, I see that no one around me has any love for my jokes, but that’s because they think that they just pop into my head, and that I don’t sweat for hours trying to perfect the funny. They’re right, of course, but I’m lot letting anyone think I know that.
[Link: Harvard Business Review - The IKEA effect]
That’s a very good point – I like the IKEA term. I’d agree, as a programmer you put a lot of work into your product so you value it very much, especially if it is something you did for the first time or finally figured out how to do it.
To think deeper about the effects, is this IKEA effect what determines your salary – the more “value” you put onto your work, the higher you get paid – it seems that this is something that has been around much longer than IKEA. That’s why doctors get so much money, all the schooling and training that is involved, adds more value to their career.
So it seems that this has always been the case, just now we have a funky term
It is always interesting how things affect us and govern our behaviour. Just the other day I was thinking that “greed” is perhaps not always a bad thing. For “greed”, or a hunger for more; knowledge, efficiency, happiness is what drives the human race on. Yes we don’t agree with some forms of greed due to morals, but in essence, it’s something that we all cannot live without.
But what about food? I’d much rather have someone elses food than my own. After all that hard work in the kitchen you sometimes get to the end and it just seems like too much effort to eat it when you’re done. Food that someone else put effort into, now that’s something else.
Joe: I get what you’re saying. Sameer and I say something similar about self-interest. It’s made out to be this really bad thing but if you think about it, everyone does everything out of self-interest. And I think that’s the way it should be. Always look out for number one. Some people think this is just wrong but I think it works. I’d give anything for Sameer because he makes ME happy. See? If he was indifferent to me, the whole situation would just be sad.
Hmmm. I have recently made a “stand” for my monitor at home. It was made with offcuts and screws and I broke a drill bit or two in the process. Would I value it over one a professional made? no. Maybe it’s just the pragmatist in me. It does just what I want for a minimal cost tho. I also made a small stand for my PC box out of chipboard. That does the job well, but I don’t overvalue it because I made it. Maybe I’m weird?
@Joseph & Faranaaz, greed and self interest channelled correctly are what have driven this world, many inventions would not be around were it not for that. Greed channelled incorrectly lead to the financial meltdown that we’re going through
No comments abt Shaik and Zuma – I’ve said too much in the media about that already 
Awww, I like your jokes, Fayyaad!
I think the IKEA effect is very accurate, and I have seen it often in myself and my friends. The only cure is to actually own some IKEA furniture. I used to really like our IKEA bed that Alex and I assembled together. But when that damn thing broke in less than a year, I now have a complete distrust of “some assembly required” products (and products made with cheap, processed wood).
And when it comes to workplace ideas, I was always known to be harshly logical. I got the nickname “Ms. Spock” because if I didn’t think an idea would work, no matter who’s it was, I would tear it apart and ask the entire team what could be improved.
However, I’m the opposite of Farnaaz in the food department. I like to think I’m the best cook on the planet. If anyone says anything when we’re at a restaurant like “This food is SOOOO good!” I immediately think “I could do better” and usually go home to try to find that recipe and improve it. Is that the IKEA effect, or am I just a competitive bitch?