Suppose a baseball team offers a lottery for the random chance to buy season tickets at a deep discount. The fans who paid full price for season tickets are more likely to attend games than the fans who bought discounted season tickets. This best describes the behavioral bias of _____.
A) sunk cost fallacy
B) hyperbolic discounting
C) falling prey to framing effect
D) overconfidence

Question

Quizplus · Accepted Answer

The sunk cost fallacy is a behavioral bias where individuals continue a behavior or endeavor as a result of previously invested resources (time, money, or effort). In this scenario, fans who paid full price for season tickets are more likely to attend games to justify the high expense, demonstrating the sunk cost fallacy. They feel compelled to make the most out of their significant investment, even if attending every game might not be in their best interest or preference.

Suppose a Baseball Team Offers a Lottery for the Random