What is the endowment effect?
A)the phenomenon that economic agents are endowed with different qualities and abilities so that trade among individuals increase efficiency
B)the tendency for economic agents with abundant resources to consume a proportionately greater quantity of goods and services
C)the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it.
D)the tendency of firms to use celebrities endowed with good looks to promote their products

Question

Quizplus · Accepted Answer

The endowment effect refers to the psychological phenomenon where people place a higher value on an object they own or possess than the value they would place on the same object if they did not own it. This leads to a reluctance to part with the object even if offered a higher price than they would be willing to pay for it.

What Is the Endowment Effect