The endowment effect suggests that people
A) have a strong attachment to things they already own, regardless of whether they paid to acquire them.
B) have a strong sense of fairness.
C) are concerned about the welfare of others.
D) act in ways that distort market prices.

Question

Quizplus · Accepted Answer

The endowment effect refers to the tendency for people to value things they already own more than identical things they do not own. This suggests that people have a strong attachment to things they already possess, even if they did not pay for them or acquire them through any effort on their part.

The Endowment Effect Suggests That People