The Endowment Effect

question 2

Multiple Choice

The endowment effect:

• A) refers to the observation that people tend to value something more highly when they own it than when they don't.
• B) refers to the observation that people tend to value something more highly when they don't own it than when they do.
• C) refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default.
• D) refers to the observation that people do not have a strong attachment to the status quo.

---

Definitions:

Existing Schema

A cognitive framework or concept that helps organize and interpret information based on known ideas and experiences.

Mental Pathways

The neural routes in the brain through which information flows and cognitive processes occur, shaping thoughts, emotions, and behaviors.

Priming

A psychological phenomenon where an initial stimulus influences a person's response to a subsequent, related stimulus without conscious guidance.

Stimulus

Any object or event that evokes a sensory or behavioral response in an organism.