Asked by Eunice Monpremier on May 01, 2024
Verified
The Endowment Effect
A) is making attributions to the person or the situation.
B) is drawing conclusions from small sample sizes.
C) is negotiators believing that their ability to be correct or accurate is greater than actually true.
D) is the tendency to overvalue something you own or believe you possess.
Endowment Effect
A cognitive bias that causes individuals to ascribe higher value to things merely because they own them.
- Understand the assortment of cognitive biases and grasp their impact on the negotiation dynamics.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
The Endowment Effect is the tendency to overvalue something you own or believe you possess. This means that individuals tend to assign a higher value to something simply because they own it, which can impact their decisions in negotiations or transactions.
Learning Objectives
- Understand the assortment of cognitive biases and grasp their impact on the negotiation dynamics.