Which of the following demonstrates the endowment effect?
A) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
B) Chris Hemsworth commands a premium in the movie industry because he is endowed with dashing looks.
C) Isabella was not willing to part with her "Chris Hemsworth" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster.
D) If you received a good as a gift, you are less likely to attach a monetary value to the good.
Correct Answer:
Verified
Q192: Economists have used the ultimatum game and
Q196: Economists have shown that when the ultimatum
Q202: Which of the following is not a
Q203: The average price of gasoline in your
Q204: A study discussed in the Making the
Q206: Before digital photography, most film processing companies
Q208: Standard economic theory asserts that sunk costs
Q209: Which of the following is a common
Q219: Grace Makutsi finally bought a pair of
Q230: One reason that consumers and businesses might
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents