Endowment Effects and Ownership in Project-Based Learning

When students feel that a piece of work is truly theirs, everything changes. They invest more time, care more about the outcome, and persist longer in the face of challenges. This isn’t just anecdotal observation, it’s grounded in a well-documented psychological phenomenon known as the endowment effect.

What is the Endowment Effect?

In behavioural economics, the endowment effect refers to our tendency to assign more value to things we own simply because we own them. In classic experiments by Kahneman, Knetsch, and Thaler (1990), participants given a coffee mug were unwilling to sell it for the price others were willing to pay to buy it. Ownership inflated its value in the eyes of the holder. Applied to education, the implications are powerful: students are more likely to care deeply about work they feel ownership over. Not because the task is inherently more important, but because their sense of identity becomes entangled with the product. It becomes their mug, or in this case, their essay, app, robot, or investigation.

Ownership in Project-Based Learning

Project-Based Learning (PBL) offers a natural pathway to cultivate this effect. Unlike traditional instruction, PBL invites students to shape the direction, structure, and outcomes of their learning. When done well, it moves them from being passive recipients to active authors of knowledge. Ownership doesn’t come simply from doing a project, though. It comes from authentic choice, meaningful context, and the ability to personalise the process.

Let’s consider how to make the endowment effect work for us in PBL.

How to Foster Ownership in the Classroom

1. Offer Meaningful Choice

   Let students choose topics, formats, or driving questions. Even small choices—like the medium they present in—can create a sense of control and personal investment.

2. Connect to Identity and Purpose

   The more students see themselves in the work, the more they value it. Link projects to students’ interests, cultural backgrounds, future ambitions, or personal values.

3. Use Public Exhibition

   When work is going to be seen—by peers, parents, experts—students take greater care. A public audience creates a natural sense of accountability and pride, amplifying the ownership effect.

4. Support Iteration and Mastery

   Ownership deepens when students build something over time. Let them revise, improve, and refine their work. Celebrate progress, not perfection.

5. Encourage Reflection

   Prompt students to reflect on what they've learned, how their thinking has changed, and what the work means to them. This metacognition strengthens their connection to the product and the process.

6. Minimise Over-Scaffolding

   Too much adult control diminishes the sense of agency. Offer structure, but leave room for autonomy. Trust students to wrestle with the messiness of real learning.

Ownership as a Motivational Lever

When students experience ownership, we see a marked increase in intrinsic motivation. They're more likely to:

• Persist through setbacks

• Engage in higher-order thinking

• Develop self-efficacy

• Take pride in craftsmanship

And importantly, they begin to see themselves not just as students completing assignments, but as creators, designers, researchers, and changemakers.

Final Thoughts: Ownership as Identity Work

At its core, the endowment effect isn’t just about valuing objects—it’s about valuing extensions of ourselves. In education, ownership isn’t just motivational—it’s transformational. When students feel that a piece of work reflects who they are, they rise to meet it with everything they’ve got. Project-Based Learning, when structured with care, becomes more than a pedagogy. It becomes a platform for identity, purpose, and pride. And in a world where many students struggle to see the relevance of their learning, that sense of this is mine might just be the most powerful nudge we can offer.