Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400.Krueger found that (a)94 percent of those surveyed would not have paid $3,000 for their tickets, and (b)92 percent of those surveyed would not have sold their tickets for $3,000.These results are an example of
A)rational consumer behavior.
B)the endowment effect.
C)the fallacy of composition.
D)the failure to ignore sunk costs.

Question

Quizplus · Accepted Answer

The endowment effect occurs when people value a good or item more highly simply because they own it. In this case, fans who bought Super Bowl tickets at a lower price were not willing to sell them for a higher price. This behavior is an example of the endowment effect.

Alan Krueger Conducted a Survey of Fans at the 2001