Although the owners of a theme park want to sell tickets for $80, they announce a general admission price of $100 per day. However, the theme park owners make tickets available online, in grocery stores, and in banks at a $20 discount. Thus, very few people pay the full general admission price. The field of behavioral economics would call this pricing an effort to sell more due to
A) sunk costs.
B) overconfidence.
C) framing bias.
D) overvaluation of the present compared to the future.

Question

Quizplus · Accepted Answer

This is an example of framing bias, where the way information is presented (framing the original price as $100 but offering a widespread $20 discount) influences the decision-making and purchasing behavior of consumers. They perceive the discounted price as a better deal, even though it's the intended selling price.

Although the Owners of a Theme Park Want to Sell