Asked by
Kenalemang Agnes
on Nov 25, 2024
Verified
The endowment effect describes when people value a good more when they own it than when they don't.
Endowment Effect
The tendency people have to place higher valuations on items they possess (are endowed with) than on identical items that they do not possess; perhaps caused by loss aversion.
- Understand the principles behind cognitive biases such as the self-serving bias, endowment effect, and availability heuristic, and their influence on individual behavior.
Verified Answer
PC
Learning Objectives
- Understand the principles behind cognitive biases such as the self-serving bias, endowment effect, and availability heuristic, and their influence on individual behavior.
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