Real estate prices have dropped substantially in Stan's home town. Stan recently got transferred and needs to sell his house, but he informs his real estate agent that he won't sell for less than the original purchase price of the house. Which bias is most consistent with Stan's statement?

Question

Quizplus · Accepted Answer

Stan's insistence on not selling for less than the original purchase price reflects anchoring and reference points, as he is fixated on the initial purchase price as a reference point for the house's value.

Real Estate Prices Have Dropped Substantially in Stan's Home Town