Tina has been trying to sell some of her things on e-bay recently, but nothing seems to sell.She listed an old board game for R200, a pair of used tights for R75, and an old (partially working) smoke detector for R600.A friend suggested that she lower her prices, but Tina maintains that these items are really worth a lot.Tina is showing a severe case of ____.

Question

Quizplus · Accepted Answer

The endowment effect refers to the tendency for people to assign a higher value to items simply because they possess them. In this case, Tina is likely overestimating the value of her items because she owns them. This is causing her to maintain high prices despite the lack of interest from buyers.

Tina Has Been Trying to Sell Some of Her Things