What do economists call the observation that people tend to value something more highly when they own it than when they do not?
A)Wealth effect.
B)Endowment effect.
C)Path dependent effect.
D)Endorsement effect.

Question

Quizplus · Accepted Answer

This is known as the endowment effect, where people tend to assign a higher value to something they own compared to the same thing if they did not own it. It is a well-known phenomenon in behavioral economics. The wealth effect refers to the change in spending patterns due to changes in wealth, while the path-dependent effect refers to how past events and decisions influence current outcomes. The endorsement effect is not a recognized term in economics.

What Do Economists Call the Observation That People Tend to Value