The tendency for individuals to assign higher values to goods when they own the goods than when they do not possess the goods is known as the:
A) substitution effect.
B) endowment effect.
C) income effect.
D) anchoring effect.

Question

Quizplus · Accepted Answer

The endowment effect refers to the fact that people tend to value goods they already own more than they would be willing to pay to acquire those same goods. This effect is sometimes referred to as "ownership bias" or "status quo bias." The other choices do not accurately describe this phenomenon.

The Tendency for Individuals to Assign Higher Values to Goods