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.
D) for people to want to bestow their own beliefs on others when making decisions.

Question

Quizplus · Accepted Answer

The endowment effect refers to the phenomenon where people tend to value an object more when they own it compared to when they do not own it. This effect has been observed across various domains, including economics, psychology, and marketing. Researchers believe that the endowment effect occurs because people tend to personalize objects they own and develop an attachment to them, leading to an increased value placed on those objects.

The Endowment Effect Is the Tendency