In Negotiation,buyers and Sellers May Adopt Differing Bargaining Positions for an Object,but

question 14

Multiple Choice

In negotiation,buyers and sellers may adopt differing bargaining positions for an object,but their private valuations for the object should not differ as a consequence of who has possession.The endowment effect is best described as:

• A)the difference between what sellers demand and what buyers are willing to pay
• B)a tendency for people to value an object more once they own it
• C)the intrinsic value we associate with a certain outcome
• D)saving money instead of purchasing goods

---

Definitions:

World Commodity Prices

The prices of raw materials and agricultural products that are traded on a global scale.

BTU

British Thermal Unit, a measure of heat energy used in the power, steam generation, heating, and air conditioning industries.

British Thermal Unit

A measure of heat energy defined as the amount needed to raise the temperature of one pound of water by one degree Fahrenheit.

Curvilinear

Describing a line or relationship that forms a curved shape, not straight or linear, often used in statistics to describe relationships between variables.