Suppose that Richard has just told you that he would not pay more than $100 dollars for one of his favorite baseball cards. You offer to give him $110 dollars for his card and he refuses. What consumer choice theory or effect explains this result?
A) the endowment effect
B) bounded rationality
C) bounded self-interest
D) bounded will power

Question

Quizplus · Accepted Answer

The endowment effect explains why Richard values his baseball card more than the market offer, as people tend to assign higher value to items they own.

Suppose That Richard Has Just Told You That He Would