Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
A) efficient rationality.
B) focal point equilibrium.
C) bounded rationality.
D) rules of thumb.

Question

Quizplus · Accepted Answer

This behavior is an example of focal point equilibrium, where individuals make decisions based on the actions of others to ensure they fit in or conform to a group norm.

Some Kids Wait Until the School Year Begins to Buy