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:

Brain Cells

The cells that make up the brain, including neurons, which are responsible for transmitting information, and glia, which support neuron function.

Primary Intersubjectivity

The early capacity of infants to engage in and reciprocate social interactions with caregivers, focusing on shared attention and emotional exchanges.

Turns Gaze

The act of directing one's look or attention from one point or object to another, often used to study attention and social cues in developmental psychology.

Evolved System

A complex structure or entity that has developed gradually over time through a process of evolution, adaptation, or innovation.