Which of the Following Demonstrates the Endowment Effect

question 195

Multiple Choice

Which of the following demonstrates the endowment effect?

• A) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
• B) Robert Pattinson commands a premium in the movie industry because he is endowed with dashing looks.
• C) Isabella was not willing to part with her "Robert Pattinson" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster.
• D) If you received a good as a gift, you are less likely to attach a monetary value to the good.

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Definitions:

Primary Reinforcer

A stimulus that fulfills a basic biological need or instinct, such as food, water, or sleep, and is inherently rewarding.

Secondary Reinforcer

A stimulus that has become rewarding through its association with a primary reinforcer.

Negative Reinforcer

An unpleasant or aversive stimulus that, when removed or avoided following a behavior, increases the likelihood of that behavior being repeated.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.