Carol and Jim just paid $360 to have the exterior of their house painted. But when it was done, they both hated how it looked and wished they had their old color back. Carol wanted to pay another painter to restore the house to its original color, but Jim wanted to leave the awful color on the house because they already paid so much money to have it painted that color. Using behavioral economics theory, analyze Jim's and Carol's reasoning.

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The Answer of Carol and Jim just paid $360 to have the exterior of their house painted. But when it was done, they both hated how it looked and wished they had their old color back. Carol wanted to pay another painter to restore the house to its original color, but Jim wanted to leave the awful color on the house because they already paid so much money to have it painted that color. Using behavioral economics theory, analyze Jim's and Carol's reasoning.

Carol and Jim Just Paid $360 to Have the Exterior