The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it.

Question

Quizplus · Accepted Answer

The statement correctly describes the endowment effect. It is a well-documented behavioral bias in which people often assign a higher value to items they already possess compared to the value they would place on the same item if they did not own it. As a result, people often demand a higher price to sell a possession than they are willing to pay to acquire it.

The Endowment Effect Is the Tendency of People to Be