Ali is having a garage sale. He is trying to sell an old alarm clock for $20, an old pair of sneakers for $40, and an old TV set for $100. These prices are way too high. Since Ali owns these products, they seem to him to be more valuable than they really are. This phenomenon is known by social psychologists as ____.
A)lateral shrinkage
B)product affinity
C)personal use shrinkage
D)the mere ownership effect

Question

Ali is having a garage sale. He is trying to sell an old alarm clock for $20, an old pair of sneakers for $40, and an old TV set for $100. These prices are way too high. Since Ali owns these products, they seem to him to be more valuable than they really are. This phenomenon is known by social psychologists as ____.
A)lateral shrinkage
B)product affinity ​
C)personal use shrinkage ​
D)the mere ownership effect ​

Quizplus · Accepted Answer

The mere ownership effect describes a cognitive bias whereby individuals ascribe higher value to things merely because they own them. This explains why Ali values his items more highly than their market worth.

Ali Is Having a Garage Sale