Over time, endowment effects tend to:A) disappear, as individuals gain experience.B) be stronger as individuals gain expertise.C) become a permanent condition.D) cancel each other out.

Question

Over time, endowment effects tend to:A)  disappear, as individuals gain experience.B)  be stronger as individuals gain expertise.C)  become a permanent condition.D)  cancel each other out.

Abdul Ahtesham · Accepted Answer

Final Answer : A, Explanation :  As individuals gain experience, they become less attached to their initial endowment and are more willing to consider alternative options. This is because they may have encountered situations where their initial endowment did not provide the expected utility, and thus are less likely to overvalue it in future decisions.

Over time, endowment effects tend to:

A) disappear, as individuals gain experience.
B) be stronger as individuals gain expertise.
C) become a permanent condition.
D) cancel each other out.

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