Suppose I Bought Some Harvard Mugs Valued at $10

Multiple Choice

Suppose I bought some Harvard mugs valued at $10.98. I gave half of the class a mug. These are the sellers. The other half do not have any mugs. They are the buyers. Neither side knows that true value of the mugs. Now supposed I asked the sellers to name a price at which they are willing to sell the mugs. At the same I asked the buyers to name a price at which they are willing to buy the mugs. It is likely that on average:

A) The sellers will ask for a price higher than $10.98; the buyers will state a price less than $10.98. This is due to the endowment effect.
B) The buyers will state a price higher than $10.98; the sellers will ask for a price less than $10.98. This is due to the endowment effect.
C) The buying price and the selling price will be equal, since MLD students are all perfectly rational.
D) The sellers will ask for a price higher than $10.98; the buyers will state a price less than $10.98. This is due to the sellers' over-confidence.