Lucky buys hats for $20,but Lucky will not sell one of her hats for less than $35.Lucky is
A)displaying the endowment effect.
B)making decisions using her prefrontal cortex.
C)exhibiting bounded self-interest.
D)showing unbounded willpower.
E)a behavioural economist.

Question

Quizplus · Accepted Answer

Lucky is displaying the endowment effect, which is the tendency for individuals to value an item more highly simply because they own it. She is unwilling to sell her hats for less than $35, even though she only paid $20 for them.

Lucky Buys Hats for $20,but Lucky Will Not Sell One