A recent willingness-to-pay survey asked respondents to value the waters of Salem Sound. The respondents were asked what they would be willing to pay to help protect the water. They were given the following choices: $10, $40, $100, $300, $650, $1,000, $3,000, $10,000 or fill in a value for some other amount. The type of behavioral bias will be captured by this question is _____.
A) sunk cost fallacy
B) time inconsistency
C) falling prey to framing effects, particularly anchoring
D) overconfidence

Question

Quizplus · Accepted Answer

The survey question is likely to capture framing effects, particularly anchoring, because the specific monetary values provided can influence respondents' perceptions of what is an appropriate amount to pay, anchoring their responses around those figures.

A Recent Willingness-To-Pay Survey Asked Respondents to Value the Waters