Jim,an avid biker,broke his leg last year and will never be able to use his bike again.He was offered $100 for it last year,but Jim refused to sell it,insisting it was worth more.A year later,he's offered only $75 for it,but Jim still refuses to sell it.Jim's behavior could be explained by:

Question

Quizplus · Accepted Answer

Jim's behavior is consistent with the endowment effect, where people tend to value items they own more than they would if they didn't own them. This effect can lead to people being reluctant to sell their possessions, even if they aren't using them or have no need for them.

Jim,an Avid Biker,broke His Leg Last Year and Will Never