The Endowment Effect

question 45

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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