In both the endowment effect and sunk cost effect consumer tend to overestimate opportunity costs.

Question

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The endowment effect leads consumers to value something more highly simply because they own it, not necessarily because they are overestimating opportunity costs. The sunk cost effect causes individuals to continue a behavior or endeavor as a result of previously invested resources (time, money, or effort), which also does not directly relate to overestimating opportunity costs.

In Both the Endowment Effect and Sunk Cost Effect Consumer