The Economics of IKEA: Why Does Labor Lead to Love?

Counterintuitive though it may seem, part of furniture giant IKEA’s success stems from its policy requiring its customers to build its products.

In this video, WSJ explains the behavioral psychology behind the “IKEA effect.”

  • 0:00 Intro
  • 1:00 Store Layout
  • 2:28 IKEA Effect
  • 5:02 Democratic Design