When asked to set a price for an item to be exchanged, sellers typically ask for a much higher price than buyers are willing to pay. This is referred to as the _____.
A) attribute framing effect
B) power effect
C) eliminatory effect
D) goal framing effect
E) endowment effect

Question

Quizplus · Accepted Answer

This is known as the endowment effect, where people tend to value items more highly when they own them or feel a sense of ownership over them. As a result, sellers tend to ask for a higher price than buyers are willing to pay because they perceive the item to be more valuable.

When Asked to Set a Price for an Item to Be