The Endowment Effect

question 10

Multiple Choice

The endowment effect

• A)states that we value an item more highly if we own it than if we do not own it.
• B)is the same as compartmentalizing.
• C)states that people are often willing to make themselves worse off in order to make someone else worse off.
• D)states that people are often willing to make themselves worse off in order to make someone else better off.

---

Definitions:

Crunch

A critical situation or period characterized by a shortage or pressured demand for certain resources, often leading to difficult decision-making.

Buyer-supplier Satisfaction Matrix

A conceptual framework that assesses the satisfaction levels of both buyers and suppliers in a business relationship, used to optimize partnership strategies.

Buyer-supplier Relationships

The ongoing interactions and engagements between businesses purchasing goods or services and their vendors or suppliers.

Competitive

The state or quality of having a competitive advantage or being able to compete effectively in the market.