Question

Behavioral economists 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 isA. Being unwilling to sell a vase for a price that is greater than the price you would be willing to pay to buy the vase if you​ didn't already own it.B. Being unwilling to sell a painting that you already own.C. Being willing to will your descendents a car upon your death that you otherwise could have sold for a substantial price.D. Buying lottery tickets with an expected value that is less than their price.E. Taking into account nonmonetary opportunity costs such as the value of your time.

Answer 1

B. Being unwilling to sell a painting that you already own

Step-by-step explanation:

Endowment effect is when individuals value things they own more highly than things they don't own. The endowment effect postulates that individuals are unwilling to exchange things they own for something else of equal value.

The amount people would be willing to accept in exchange for the good they own is usually very high compared to the true value of the object they own.

I hope my answer helps you.