In behavioral economics,the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth.
B) many people would be indifferent between being endowed with money or knowledge.
C) many people place a higher value on what they own than when they consider purchasing.
D) most people respond to tax incentives to provide an endowment for their children.

Question

Quizplus · Accepted Answer

The endowment effect is the tendency for people to place a higher value on things they own or possess than on equivalent things they do not own or possess. This can affect their willingness to sell or trade something they own, even if it may not have significant monetary value. Option A, B, and D are not related to the endowment effect.

In Behavioral Economics,the Endowment Effect Refers to