Problem
Julie wins in the lottery and decides to buy a new car. She won $20000 and decides to get a Chevrolet Cruze at a competitive price (i.e., there is no cheaper Chevy Cruze available). A day after she has purchased the car, she changes her mind and decides to sell it again. To her horror, no one wants to buy the vehicle at the price she paid, even though she only drove from the dealer to her house (20 miles). The best offer she receives to her craigslist ad is substantially lower than what she paid. How can we explain this using economic theory?