Question

Mark is reluctant to sell his car. He says that his car is of great significance to him even though most people who owned a similar car have sold it. Mark is not willing to let go of the car because he considers it to be invaluable. Mark’s belief about his car is an example of:________

Answer 1

Answer:

The endowment effect.

Explanation:

The endowment effect is the reluctancy to sell or throw away an object they own opposed to acquiring the same object if they do not own it. In this case, Mark is reluctant to sell his car. Even if it meant great significance to him or not, he would not buy the same model if he hadn't had it in the first place. He would buy another one, according to this theory.