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:

Free Time

Periods when one is not working or engaged in compulsory activities, allowing for rest, leisure, or personal pursuits.

Hardest Decision

A particularly challenging choice that one must make, often involving a significant amount of uncertainty or potential consequences.

Employers Look

Refers to the qualities, skills, and attributes that employers seek in potential job candidates during the hiring process.

Potential Questions

Inquiries that might be raised in a particular context, often anticipated in preparation for discussions, interviews, or presentations.