What Is the Endowment Effect

question 130

Multiple Choice

What is the endowment effect?

• A) The tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than what they would be willing to pay to buy the good if they did not already own it.
• B) The tendency of people to be unwilling to sell something they already own because of its sentimental value.
• C) The tendency of people to overstate the value of a good they already own even though similar items can be purchased at a lower price.
• D) The sum total of assets that a person has acquired over the years.

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Definitions:

Mother Substitutes

Alternative caregivers that provide nurturing and care in the absence or supplementation to a biological mother.

Secure Base

A concept in attachment theory referring to the role of caregivers in providing a sense of security for children, allowing them to explore the world.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Learning Experiences

Activities or events that provide opportunities for gaining new knowledge, skills, attitudes, or values.