How does the endowment effect impact consumer choices?

How does the endowment effect impact consumer choices?

The endowment effect impacts consumer choices by causing individuals to place a higher value on items they already possess compared to identical items they do not own. This bias leads consumers to be reluctant to give up their possessions and overvalue them, resulting in higher prices they are willing to pay to acquire the same item they already own. Additionally, the endowment effect can lead to a resistance to change and a preference for the status quo, making consumers less likely to switch to alternative products or brands.