Ramon opened a combination laundry and dry cleaning establishment three years ago that is quite successful. 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 behavioral characteristics?
A) Self-attribution bias
B) Overconfidence
C) Regret aversion
D) House money effect
E) Frame dependence

Question

Quizplus · Accepted Answer

Ramon is exhibiting regret aversion, which is the reluctance to take action due to fear of making a decision that leads to regret. Ramon is worried about the possibility of failure and regrets associated with opening a second location, so he continuously delays making the decision. This is a common behavior exhibited by entrepreneurs when faced with important decisions.

Ramon Opened a Combination Laundry and Dry Cleaning Establishment Three