Question

Behavioral economistsLOADING... attribute some consumer behavior to the endowment effect. Which of the following is an example of the endowment​ effect? An example of the endowment effect is A. being willing to will your descendents a househouse upon your death that you otherwise could have sold for a substantial price. B. buying lottery tickets with an expected value that is less than their price. C. being unwilling to sell a carcar that you already own. D. being unwilling to sell a paintingpainting for a price that is greater than the price you would be willing to pay to buy the paintingpainting if you​ didn't already own it. E. taking into account nonmonetary opportunity costs such as the value of your time.

Answer 1

Answer: Option C

Step-by-step explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.

Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.