Vernon is most likely to agree to pay extra to upgrade his hotel room if he has just booked , because of the phenomenon known as .
A)an inexpensive vacation; framing
B)an inexpensive vacation; anchoring
C)an expensive vacation; framing
D)an expensive vacation; anchoring

Question

Quizplus · Accepted Answer

Anchoring refers to the cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") when making decisions. In this context, if Vernon has just booked an expensive vacation, the high cost of the vacation serves as an anchor, making the additional cost of upgrading the hotel room seem relatively minor in comparison, thus he is more likely to agree to pay extra.

Vernon Is Most Likely to Agree to Pay Extra to Upgrade