What is the endowment effect?
A) The tendency of people to be 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 to buy the good if they did not already own it.
B) The tendency of people to be unwilling to sell something they already own because of its sentimental value.
C) The tendency of people to overstate the value of a good they already own even though similar items can be purchased at a lower price.
D) The sum total of assets that a person has acquired over the years.

Question

Quizplus · Accepted Answer

The endowment effect is the tendency of people to place a higher value on something they already own compared to something they do not own. This means that people may be unwilling to sell a good that they own even if they are offered a price that is greater than what they would be willing to pay to buy the same good if they did not already own it.

What Is the Endowment Effect