Sellers should create the endowment effect by setting a higher price for goods than buyers are willing to pay.

Question

Quizplus · Accepted Answer

The endowment effect refers to the tendency of people to value things they already own (or feel like they own) more highly than they would if they did not own them. It is not necessary for sellers to set a higher price than buyers are willing to pay in order to create this effect. In fact, setting an unrealistically high price may actually deter buyers and lower the perceived value of the item.

Sellers Should Create the Endowment Effect by Setting a Higher