The observation that people tend to value something more highly when they own it than when they don't is called the
A)wealth effect.
B)endowment effect.
C)path-dependent effect.
D)endorsement effect.

Question

Quizplus · Accepted Answer

The observation described in the question is known as the endowment effect. Studies have shown that when people are given ownership of an item, they tend to assign a higher value to it than they would if they did not own it. This effect has been observed across a wide range of contexts, including consumer behavior and negotiations. Option A refers to the idea that people feel wealthier when the value of their assets increases, while options C and D are not related to the concept described in the question.

The Observation That People Tend to Value Something More Highly