Anne and Jim participated in an experiment about the willingness to pay for a set of head phones. Jim is suggested a price of $\$ 13$ and Anne is suggested a price of $\$ 22$. The experimenters conclude that both Anne and Jim use the anchoring and adjustment heuristic to arrive at a final willingness to pay. What are possible values of their willingness to pay:
A) Anne: $\$ 15$. Jim: $\$ 30$.
B) Anne: $\$ 30$. Jim: $\$ 30$.
C) Anne: $\$ 13$. Jim: $\$ 13$.
D) Anne: \$25. Jim: \$15.

Question

Quizplus · Accepted Answer

The anchoring and adjustment heuristic suggests that people start with an initial anchor (suggested price) and adjust from there. Anne's willingness to pay is likely to be around her anchor of $22, and Jim's around his anchor of $13.

Anne and Jim Participated in an Experiment About the Willingness $13\$ 13$13

Anne and Jim Participated in an Experiment About the Willingness $\$ 13$