According to a behavioural economist,a person who is unwilling to sell the last kilogram of rice he purchased for the same price that he paid for it is displaying
A)the endowment effect.
B)bounded rationality.
C)bounded self-interest.
D)bounded willpower.
E)rational behaviour.

Question

Quizplus · Accepted Answer

The behaviour described in the question is an example of the endowment effect, which is when people ascribe higher value to things simply because they own them. In this case, the person who bought the rice is more attached to it now that he owns it and is therefore unwilling to sell it for the same price he paid for it. The other options do not accurately describe the situation.

According to a Behavioural Economist,a Person Who Is Unwilling to Sell