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 is displaying regret aversion, which means he is avoiding making a decision that could potentially lead to regret or failure. He is hesitant to expand because he is afraid it may not be successful, causing him to regret his decision to expand.

Ramon Opened a Combination Laundry and Dry Cleaning Establishment Three