The Endowment and IKEA Effects: Arranging Your Living Space in the Minimalist and the Feng Shui Styles

Abstract

This study explores how self-involvement in interior design influences perceived value by examining the interaction of the endowment and IKEA effects. Using a two-stage thought experiment, the research simulated hypothetical buying and selling scenarios involving virtual one-bedroom apartments furnished according to two contrasting styles: Feng Shui and minimalism. Fifty imagined participants engaged in furnishing tasks while a second group evaluated pre-arranged spaces, allowing the study to compare valuation patterns under conditions of active participation and passive observation. The hypothetical results suggest that personalization combined with symbolic meaning amplifies attachment, increasing willingness to pay (WTP) and willingness to accept (WTA) beyond baseline estimates. Full engagement in furnishing, particularly when aligned with culturally significant frameworks such as Feng Shui, appeared to generate stronger emotional investment than minimalist arrangements. Differences between WTP and WTA persisted across all phases, thus reflecting valuation asymmetries often attributed to loss aversion. Although purely conceptual, this simulation provides a structured framework that future studies can adapt for empirical testing. Its insights thus hold practical relevance for real estate and design sectors, where participatory strategies could enhance perceived and actual property value. The anticipated findings aim to highlight the role of autonomy, effort, and meaning in shaping consumer behavior, and ultimately illustrate how cognitive biases may function as constructive forces when integrated into design processes.