Jim, an Avid Biker, Breaks His Leg and Will Never

Multiple Choice

Jim, an avid biker, breaks his leg and will never be able to bike again. An acquaintance offers to buy the bike for $100, but Jim refuses to sell it, insisting it is worth more. A year later, someone offers to buy the bike for $75, but Jim still refuses to sell it. Jim's behavior could be explained by:

A) limited processing power.
B) the endowment effect.
C) status quo bias.
D) substitution effect.