Does “owning” the extra credit and losing it make you value it more or less?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter4: Going Into Debt
Section4.1: Americans And Credit
Problem 3R
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Does “owning” the extra credit and losing it make you value it more or less?
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The answer to this question depends on the context in which the extra credit is being valued. In general, owning something and losing it can increase one's attachment to it, and therefore make one value it more. This is often referred to as the endowment effect, which is the idea that people value an item more simply because they own it.

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