Ramon opened a combination laundry and dry cleaning establishment three years ago. Due to his excellent service and reasonable prices, his business has grown and is doing quite well financially. He has considered expanding this business by opening another location but keeps putting off that decision for fear that the second location will not be a success. Ramon is currently displaying which one of the following behavior characteristics?
A) Self-attribution bias.
B) Overconfidence.
C) Regret aversion.
D) House money effect.
E) Frame dependence.

Question

Quizplus · Accepted Answer

Ramon's hesitation to open another location due to fear of failure is an example of regret aversion. This behavior is characterized by the desire to avoid the feeling of regret that comes with making a decision that leads to a negative outcome.

Ramon Opened a Combination Laundry and Dry Cleaning Establishment Three