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The Endowment Effect Is the Tendency of People to Be

question 172

True/False

The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it.


Definitions:

Extrinsic Rewards

Benefits received from an external source as recognition for performing a particular action or behavior, such as money or praise.

Intrinsic Rewards

A type of motivation driven by an internal reward, such as personal satisfaction or the joy of performing a task, rather than by external factors.

Needs

Fundamental requirements or essentials necessary for individuals or communities to thrive and function.

Fears

Emotional responses to perceived threats or dangers, often causing anxiety, stress, or avoidance behaviors.

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