Mehmet and Semra went to a movie but were soon bored with it. Semra wanted to leave. Mehmet did not want to leave because they had already paid for their tickets, which would be wasted if they left before the movie was over. What psychological factor associated with behavioral economics explains Mehmet's behavior?
A) framing bias
B) sunk cost fallacy
C) overconfidence
D) altruism

Question

Quizplus · Accepted Answer

Mehmet's reluctance to leave the movie, despite not enjoying it, because they had already paid for the tickets, is an example of the sunk cost fallacy. This fallacy occurs when individuals continue a behavior or endeavor as a result of previously invested resources (time, money, or effort), even if they would not make the same decision again.

Mehmet and Semra Went to a Movie but Were Soon