Whats the difference between the two in reference to a case study in pg 88 Reading 6 (Beh biases of Indiv) Vol III.
Specifically regarding Mr Renaldo holding a large chunk of his portfolio in comp stock. (Sounds Like confirmation bias, yet the book states its endownment bias??)
these two biases are not stated in the passage. Although I could see how endownment bias could be one as he seems to have significant lot of assets from stock options from his employers. But it doesn’t say he has any sort of attachment to towards it so that’s why it was left out.
Endowment bias is an unwarranted sense of value in something usually from sentiment value (i.e. inheritance) that is above the market value of the asset. So you are emotionally attached to it. It’s an emotional bias because it involves irrational “feeling”
Confirmation bias is a belief perseverence where you seek information that validate or confirm you opinion and negate all those that is counter to your opinion.