Suppose You Took a Group of People and You Gave

Multiple Choice

Suppose you took a group of people and you gave half of the group a University of Auckland mug. The mugs are valued at $15.99 but the group is not (necessarily) aware of the price. All those who have a mug are called "sellers" while all those without a "mug" are buyers. Now you ask the buyers to name a maximum price at which they are willing to buy the cup. You ask the sellers to name a minimum price at which they are willing to sell a cup. It is highly likely that:

A) The average buying price is less than the average selling price; this is due to the endowment effect.
B) The average buying price is less than the average selling price; this is due to the sunk cost fallacy.
C) The average selling price is less than the average buying price; this is due to the endowment effect.
D) The average selling price is less than the average buying price; this is due to the sunk cost fallacy effect.