In competitive markets, people who have systemic biases are likely to:
A) increase over time.
B) exit the market over time or adjust their behaviors.
C) have a comparative advantage over their rational counterparts.
D) never enter markets and participate in them.

Question

Quizplus · Accepted Answer

Systemic biases can lead to suboptimal decision-making, which in competitive markets can result in losses or underperformance. Over time, individuals with such biases may either exit the market due to their inability to compete effectively or adjust their behaviors to mitigate the impact of these biases and remain competitive.

In Competitive Markets, People Who Have Systemic Biases Are Likely