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.

---

Definitions:

Dominant

A term used in genetics to describe an allele that expresses its phenotypic effect even in the presence of a recessive allele.

Horned Cow

A breed or individual of cattle that has distinctive horns, used for defense, display, and other functions.

Homozygous Dominant

A genetic condition where an individual possesses two identical alleles for a trait on both homologous chromosomes, and the trait is dominant.

Phenotypes

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.