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:

Conservative

In politics, it refers to someone favoring traditional views and values, tending to oppose change. In other contexts, it can also mean cautious or restrained.

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The pressure of circulating blood on the walls of blood vessels, often measured for both systolic and diastolic pressures.

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A statistical term that describes the distribution of a variable contingent on the value(s) of one or more other variables.

Employees

Individuals who work for someone else in exchange for financial or other compensation.