An Economist Secures Volunteers from Her College Campus and Divides

An economist secures volunteers from her college campus and divides them into two groups that are ushered into different rooms.Both groups are given a test.Those in the first group who score 90 percent or more receive an Apple iPod.Upon exiting the room, those given iPods are offered the choice of receiving $150 in exchange for the iPod.Only a few take the exchange.Those in the second group who score 90 percent are offered either an Apple iPod or $150.50.50.About half the students choose
$150.50.50.The professor uses these data to support a principle known as the endowment effect.The professor is engaging in:

A) experimental economics.
B) natural experiments.
C) the economic decision rule.
D) a market coordination mechanism.