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:

Significance Level

A threshold set by the researcher before an experiment to decide whether to reject the null hypothesis, typically denoted by alpha (α).

Weekly Salaries

The amount of money a person earns per week from their employment.

Female Employees

Female employees are women engaged in work for an organization or business, encompassing a wide range of roles and industries.

Male Employees

Workers identified as male within an organization or workplace.