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 is A. being unwilling to sell a house for a price that is greater than the price you would be willing to pay to buy the house if you didn't already own it. B. taking into account nonmonetary opportunity costs such as the value of your time. C. buying lottery tickets with an expected value that is less than their price. D. being willing to will your descendents a painting upon your death that you otherwise could have sold for a substantial price. E. being unwilling to sell a vase that you already own.
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 is A. being unwilling to sell a house for a price that is greater than the price you would be willing to pay to buy the house if you didn't already own it. B. taking into account nonmonetary opportunity costs such as the value of your time. C. buying lottery tickets with an expected value that is less than their price. D. being willing to will your descendents a painting upon your death that you otherwise could have sold for a substantial price. E. being unwilling to sell a vase that you already own.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Concept: Endowment Effect
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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 is
being unwilling to sell a
price that is greater than the price you would be willing to pay to buy the
house
for a house
if you didn't already own it.taking into account nonmonetary opportunity costs such as the value of your time.
buying lottery tickets with an expected value that is less than their price.
being willing to will your descendents a
painting
upon your death that you otherwise could have sold for a substantial price.being unwilling to sell a
vase
that you already own.Expert Solution
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