ABSTRACT
This important aspect of our economy and our well-being is best understood in the context of the social capital paradigm that connects social capital with the creation of Socio-emotional goods (SEGs) and their being embedded in objects. The change in the value and meaning of conveyances as a result of embedded SEGs is called attachment value, and the goods whose value is mostly determined by their attachment value are called attachment value goods (AVGs). AVGs acquire their attachment value when they become embedded with SEGs produced in social capital-rich exchanges. Thus, in the developed economies much of the value of goods is associated with AVGs. Endowment effects are consistent with what we call attachment values. SEGs may become embedded in an object through ownership. Attachment values depend on shared values often reflected in our culture. Non-physical objects for which attachment values are essential are institutions.
