Question

The observation that people tend to value something more highly when they own it than when they don't is called the:

A) wealth effect.
B) endowment effect.
C) path-dependent effect.
D) endorsement effect.

Answer 1

Answer: Endowment Effect

Step-by-step explanation:

The endowment effect simply put, describes that consumers tends to value products they own more than the ones they don't own, even if they are both the same. In endowment effect emotions is a major determining factor, as the consumer is believed to be more emotionally attached to their properties.