Sellers typically ask a higher price for an item than buyers are willing to pay.This is called a(n)
A) compensatory model.
B) noncompensatory model.
C) elimination by aspect model.
D) lexicographical model.
E) endowment effect.

Question

Quizplus · Accepted Answer

The endowment effect is a psychological phenomenon where people ascribe more value to things merely because they own them. This explains why sellers often ask for a higher price than buyers are willing to pay, as sellers value the item more highly due to their ownership of it.

Sellers Typically Ask a Higher Price for an Item Than