Consider the following scenario: Many students at your school purchase a custom-made book bag. There are only 50 for sale and even priced at $100 they quickly sell out. Based on your understanding of loss aversion from Chapter 18, how much would another student need to offer for someone to sell a book bag he or she has previously purchased?

Question

Quizplus · Accepted Answer

Based on the concept of loss aversion, individuals typically require a significantly higher price to give up an item than they are willing to pay to acquire it. Therefore, a student who has purchased a custom-made book bag for $100 would likely require an offer substantially higher than $100 to part with it, making $200 a plausible minimum offer.

Consider the Following Scenario: Many Students at Your School Purchase