What Is the Endowment Effect

question 263

Multiple Choice

What is the endowment effect?

• A)the phenomenon that economic agents are endowed with different qualities and abilities so that trade among individuals increase efficiency
• B)the tendency for economic agents with abundant resources to consume a proportionately greater quantity of goods and services
• C)the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it.
• D)the tendency of firms to use celebrities endowed with good looks to promote their products

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Definitions:

Perception Of Competence

The extent to which others believe an individual has the ability or skills to perform effectively.

Unspoken Rules

Implicit norms or conventions that are understood and followed by members of a community or society but are not formally documented.

Professional Image

Professional Image is the perception or depiction of an individual or company as competent, reputable, and suitable within a professional context.

Personal Characteristics

Personal characteristics are the traits, qualities, and attributes that define an individual's personality and behavior.