Which of the following demonstrates the endowment effect?
A) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
B) Robert Pattinson commands a premium in the movie industry because he is endowed with dashing looks.
C) Isabella was not willing to part with her "Robert Pattinson" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster.
D) If you received a good as a gift, you are less likely to attach a monetary value to the good.

Question

Quizplus · Accepted Answer

The endowment effect is a cognitive bias where people ascribe more value to things merely because they own them. Isabella's unwillingness to sell the poster for more than its market value illustrates this effect.

Which of the Following Demonstrates the Endowment Effect