Dale just won tickets to see a NASCAR race. His coworker offers to pay him $200 for the tickets, but Dale decides to use them even though he would not pay $200 for them himself. Dale's willingness to consume $200 worth of tickets that he doesn't value at $200 is attributed to:

Question

Quizplus · Accepted Answer

Dale's decision is an example of the endowment effect, which is not listed among the provided options. The endowment effect is a psychological phenomenon where people value something they own more highly than something they do not own, even if the market value is the same. This is why Dale chooses to use the tickets himself rather than sell them, despite not valuing them at $200. None of the provided options accurately describe this behavior.

Dale Just Won Tickets to See a NASCAR Race