Which of the following might explain the evidence of an endowment effect in behavioral economics?
A) government regulation
B) knowledge and experience
C) the federal tax code
D) class envy

Question

Quizplus · Accepted Answer

The endowment effect is the tendency for people to value an item more highly if they already own it. This is a cognitive bias that can be explained by people's knowledge and experience with the item they already possess, which leads them to overvalue it in comparison to other items they do not possess.

Which of the Following Might Explain the Evidence of an Endowment