Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact that he would enjoy the flavor of the tiramisu the same amount every time, Josh only buys it when others are having dessert and never buys it if he would be the only one having dessert. Behavioral economists would say that Josh's decision is affected by

Question

Quizplus · Accepted Answer

Josh's decision is influenced by framing effects because his choice to buy tiramisu is affected by how the situation is presented or "framed" (i.e., whether others are having dessert or not), rather than just the inherent value or enjoyment of the dessert itself.

Whenever Josh Goes to His Favorite Restaurant, He Wants to Buy