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:

Independent Treatment

Medical care or intervention provided without the direct involvement of a clinician or healthcare professional, often referring to self-care measures.

Nausea

A sensation of unease and discomfort in the stomach with an urge to vomit.

Hemorrhage

Excessive or uncontrolled bleeding.

Impaired Physical Mobility

A reduction in the ability to move or perform physical activities in a normal manner, often due to injury, disease, or a physical condition.