Casinos make their interiors very plush and expensive looking knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gambler's behaviour?
A) Most people are unaware of the true risk of making certain decisions and therefore believe that a larger wager has higher odds of winning.
B) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behaviour that is not rational.
C) In luxurious surroundings, gamblers look at lost bets as a price to pay to be in that kind of environment.
D) The functional risk of gambling is decreased in luxurious surroundings leading gamblers to wager more.
E) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.
Correct Answer:
Verified
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