The tendency of people to believe that something they own is more valuable than an identical item that they do not own is known in prospect theory as the

A) endowment effect.
B) anchoring effect.
C) status quo bias.
D) confirmation bias.

Endowment Effect

A mental prejudice in which individuals attribute higher worth to items simply because they possess them.

Prospect Theory

A behavioral economic theory that describes how people make decisions between probabilistic alternatives that involve risk, where the outcomes are known.

Identical Item

A product or object that is exactly the same in every aspect as another, with no variations.