Economics Endowment Effect Questions
The endowment effect in economics refers to the tendency of individuals to value an item or good more highly simply because they own it or possess it. This means that people often place a higher value on an item they already own compared to the value they would place on the same item if they did not own it. This effect can lead to irrational behavior in economic decision-making, such as individuals being unwilling to sell an item for its market value or being unwilling to pay a fair price for an item they do not own.