The endowment effect is the tendency:
A)to place a higher value on something a person already owns simply because they own it.
B)to have a harder time parting with wealth people have held the longer the amount of time they hold it.
C)for a person to believe they hold a particular skill because someone told them they do,regardless of who person is telling them.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

The endowment effect refers to the tendency of people to place a higher value on something they already own simply because they own it. This can result in them being unwilling to part with it or asking for a higher price when selling it. Both B and C are not related to the endowment effect.

The Endowment Effect Is the Tendency