The IKEA effect.

Build a small figure from seven tangram pieces. Then put a price on your figure and on an identical one built by the lab. Does your effort change its value?

3 minto take part 1responses Anonymousno sign-up needed
????
EXP. 061

Would you value something you built with your own hands more than an identical ready-made one?

Loading the experiment… It needs JavaScript to run; you can still read the science box and the article below.

Take part first.

Reading the science could sway your answer. Everything unlocks once you take part, but you can read it now if you prefer.

Back to the experiment
Science box

People value things they built through their own effort more than identical ready-made ones. But this “love of labour” appears when the job is completed successfully.

What we measure

We measure Michael Norton, Daniel Mochon and Dan Ariely’s (2012) IKEA effect with a small tangram task. The screen shows a figure’s silhouette (a house, a sailboat, a mug or a fish; the game’s seed decides which). You drag seven pieces to fill the silhouette; tapping a piece rotates it by 90 degrees, and it snaps into place when you bring it close to the right spot. If you get stuck, a hint button appears after 40 seconds and places one piece each time you press it. When the figure is complete we ask two questions: if the figure you built and an identical figure built by the lab (same shape, same colours) were printed as postcards, what is the most you would pay for each? Which one comes first is random. We call the percentage by which your price for your own figure exceeds (or falls short of) the ready-made one your “premium”. We store the build time, the number of hints you used and the two prices.

What the research says

Across four studies, Norton, Mochon and Ariely (2012) had participants assemble IKEA boxes, fold origami and build Lego sets. People who assembled a box themselves bid $0.78 on average; people who inspected a pre-assembled one bid $0.48. People who folded origami offered $0.23 for their own frog or crane; other people offered only $0.05 for the same pieces, and $0.27 for origami made by experts. In other words, amateurs valued their own creations almost as highly as experts’ work. The effect appeared when the task was completed: among participants who built a Lego set and then took it apart, or left an IKEA box unfinished, the premium disappeared or shrank markedly. Sarstedt, Neubert and Barth (2017) found the effect again in a conceptual replication, and Marsh, Kanngiesser and Hood (2018) showed that it already appears in children around the age of 5.

Why it happens

Several explanations may work together. Effort justification: valuing something we worked on reassures us that our effort wasn’t wasted (like the group joined through a severe initiation being liked more in Aronson and Mills, 1959). A sense of competence: completing a task makes us feel capable, and that feeling spills over onto the product; Norton and colleagues’ finding that the effect vanishes for unfinished work fits this explanation. Ownership: simply owning something can raise its value (the endowment effect in Kahneman, Knetsch and Thaler, 1990). Marsh and colleagues (2018) argued that ownership alone doesn’t explain the effect in children and that the link between the creation and the self may matter.

Limitations

There is no real money here; the prices are hypothetical. The original studies had participants bid with real money. Because each participant prices both their own figure and the ready-made one, thinking about the two prices side by side may pull them together; we randomise the order to balance this. The tangram figure stays on screen; you don’t hold an object, which may shrink the effect. People who use hints made the figure partly “ready-made”, so we show them separately. Prices are in Turkish lira on the Turkish site and in dollars on the English site; we compare using the premium percentage, which doesn’t depend on currency. When someone gives the ready-made figure a price of zero, the premium can’t be calculated, so we use an upper limit (+400%); that is why we highlight the median premium rather than the mean.

$0.78 / $0.48IKEA box: bid by builders / bid by people who inspected a ready-made boxNorton, Mochon and Ariely, 2012
$0.23 / $0.05 / $0.27Origami: price for own creation / others’ price for the same piece / price for expert workNorton, Mochon and Ariely, 2012
$1.46 / $0.59IKEA box: completed / last two steps left undoneNorton, Mochon and Ariely, 2012
about 5Age at which valuing one’s own creations appearsMarsh, Kanngiesser and Hood, 2018
  1. Norton, M. I., Mochon, D., & Ariely, D. (2012). The IKEA effect: When labor leads to love. Journal of Consumer Psychology, 22(3), 453–460. View source ↗
  2. Sarstedt, M., Neubert, D., & Barth, K. (2017). The IKEA effect. A conceptual replication. Journal of Marketing Behavior, 2(4), 307–312. View source ↗
  3. Marsh, L. E., Kanngiesser, P., & Hood, B. (2018). When and how does labour lead to love? The ontogeny and mechanisms of the IKEA effect. Cognition, 170, 245–253. View source ↗
  4. Aronson, E., & Mills, J. (1959). The effect of severity of initiation on liking for a group. Journal of Abnormal and Social Psychology, 59(2), 177–181. View source ↗
  5. Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1990). Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy, 98(6), 1325–1348. View source ↗

The secret of the cake mix

When instant cake mixes reached the shelves in the 1950s, the thinking went that making things so easy would be welcome. According to the story Norton and colleagues tell in the introduction to their paper, the first reactions were lukewarm, and manufacturers changed the recipe so that people had to add an egg themselves. A little effort made the product more loved. The details of the story are disputed, but the idea behind it has been tested in experiments.

In this experiment you build a small figure from seven tangram pieces. Then we ask the most you would pay for your figure and for an identical one built by the lab, if both were postcards. The two figures look exactly the same; the only difference is that you built one of them.

IKEA boxes, origami and Lego

In their first study, Michael Norton, Daniel Mochon and Dan Ariely (2012) had some of 52 university students assemble a plain black IKEA storage box, while others were given the assembled box to inspect. Then everyone was asked to bid real money for the box. People who assembled it themselves bid $0.78 on average; people who inspected the ready-made box bid $0.48.

In the second study participants folded an origami frog or crane. They offered $0.23 on average for their own origami. Other participants who saw the same pieces offered only $0.05; for origami folded by experts they offered $0.27. The amateurs valued their own creations almost as highly as expert work, and expected others to agree.

Labour only pays off when it’s finished

Norton and colleagues also looked for the effect’s limits. In one study participants built small Lego sets; one group built a set and left it, another built it and then took it apart, and a third received it pre-built. Only those who built and kept their set bid markedly more for their own set than for their partner’s; among those who took it apart and those who got it pre-built, the difference wasn’t significant.

In another study, people who stopped before the last two steps of an IKEA box offered $0.59 on average; those who completed it offered $1.46. According to the authors, labour turns into love when it ends in success. That is why we show the results of people who did and didn’t press the hint button separately.

Why do we love what we make?

One explanation is effort justification: in Aronson and Mills’ (1959) study, people who joined a discussion group through a severe initiation liked the group more. Valuing what we worked on protects the feeling that our effort wasn’t wasted. Another explanation is competence: completing a task makes us feel capable, and that feeling transfers to the product. The effect disappearing for unfinished work fits this explanation.

Ownership may also play a role: Kahneman, Knetsch and Thaler (1990) showed that merely owning a mug raises the price people ask for it. But Marsh, Kanngiesser and Hood (2018) found that the tendency to value one’s own creations appears in children around the age of 5 and can’t be explained by ownership alone; in their view the link between the creation and the self matters. Sarstedt and colleagues (2017) found the effect again with a different set-up and suggested that a feeling of psychological ownership mediates it.

The IKEA effect in everyday life

Flat-pack furniture, meal kits, customisable products and services where customers contribute a bit of effort can all benefit from this effect. There is a flip side too: we may value our own ideas, projects and code more than others think they deserve.

On the results screen we compare the price you gave your figure with the price you gave the ready-made one. You can see the crowd’s median premium and the share of people who priced their own figure higher. If you gave both the same price, that is valuable data too: the effect is an average and doesn’t show up in everyone.

FAQ

What is the IKEA effect?

It is people’s tendency to value products they built through their own effort more than identical ready-made ones. Norton, Mochon and Ariely (2012) named it; in their first study participants assembled IKEA boxes.

How is the premium calculated?

From the ratio of your price for your own figure to your price for the ready-made one: (own ÷ ready-made − 1) × 100. For example, if you offered $3 for yours and $2 for the ready-made one, the premium is +50%. If you gave the ready-made figure $0 and your own figure a positive price, the premium counts as the upper limit of +400%.

Does using a hint change the result?

It might. Norton and colleagues found that the effect appears when the job is completed and disappears when the work is unfinished or undone. A hint places a piece for you; we show the results of people who used hints separately.

Is this meaningful without real money?

In the original studies participants bid real money; here the prices are hypothetical. Hypothetical prices tend to be higher, but because we compare the difference between the two figures, this shift affects both in the same way.

Does everyone show the effect?

No. It is an average tendency. Some people give both figures the same price, and some value the ready-made one more. The crowd results show the share of each of these three groups.

Discussion 0 comments

Join the discussionReading is open to everyone. Volunteer to comment and vote; it takes 20 seconds.
No comments yet.Be the first to write; a good question gets the discussion going.

Threads about this experiment

Start a new thread →
There’s no separate thread for this experiment yet. Start one to critique the method, share a paper or ask a new question.