What is the endowment effect?
A) Children who receive a large inheritance are less likely to work.
B) The more you have of something, the more you want to get rid of it.
C) The fact of owning a good makes it more valuable.
D) Colleges with large endowments give student aid more generously.

Question

Quizplus · Accepted Answer

The endowment effect is a psychological phenomenon where people ascribe more value to things merely because they own them. This means that ownership itself increases the item's value in the owner's eyes, which is why option C is correct.

What Is the Endowment Effect