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.

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Definitions:

Insecure Attachment

A problematic bond between a child and caregiver characterized by fear, anxiety, or uncertainty.

Conservation

The principle in cognitive development where a child understands that quantity remains the same despite changes in its shape or form.

Asperger Syndrome

A developmental disorder characterized by significant difficulties in social interaction and nonverbal communication, along with restricted and repetitive patterns of behavior and interests.

Social Deprivation

The lack of socially normal interaction, communication, and engagement with others, leading to adverse effects on development and well-being.