The endowment effect is
A)the phenomenon that economic agents are endowed with different qualities and abilities so that trade among individuals increase efficiency
B)the tendency for economic agents with abundant resources to consume a proportionately greater quantity of goods and services
C)the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it.
D)the tendency of firms to use celebrities endowed with good looks to promote their products

Question

Quizplus · Accepted Answer

The endowment effect refers to the tendency of people to place a higher value on something they own compared to something they do not own, simply because they own it. This leads to individuals being unwilling to sell something they already own, even if they are offered a price that is greater than what they would be willing to pay for the same item if they did not already own it.

The Endowment Effect Is