Asked by
Wajiha Khalid
on Nov 25, 2024
Verified
According to the "endowment effect,"
A) people are willing to pay more for things they don't own than they would have to receive to give up something they already have.
B) people feel gains and losses with equal intensity.
C) people assign higher values to things they own than things they don't.
D) the intensity of feelings from gains and losses depends on how much wealth one possesses.
Endowment Effect
A cognitive bias where people ascribe more value to things merely because they own them.
Gains
The increase in economic benefit, which can be measured in terms of profit, utility, or welfare, resulting from an action or transaction.
Losses
The financial deficit arising when the cost of producing and operating exceeds the revenue generated.
- Familiarize oneself with the endowment effect concept in the field of behavioral economics.
Verified Answer
NR
Learning Objectives
- Familiarize oneself with the endowment effect concept in the field of behavioral economics.