Answered
Rosa received a corgi pillow as a raffle prize; she would have been willing to pay $18 to buy it herself. Based on the endowment effect, we would expect Rosa to be willing to sell the pillow
A) for some amount less than $18.
B) only if she is offered more than $18.
C) for the $18 she would have been willing to pay for the pillow.
D) under no circumstances whatsoever.
On Sep 23, 2024