Carlos has a camera in his car that records continuously when the car is in motion. The insurance company gives his parents a discount for having the camera in his car. If the car makes a sudden motion, the recording is sent to an analyst at the insurance company, who determines if Carlos is engaging in risky behavior. The analyst gave Carlos a "D" grade for his driving. Carlos was shocked; he considers himself to be an above-average driver. His parents were not shocked. What aspect of behavioral economics might explain this situation?

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The Answer of Carlos has a camera in his car that records continuously when the car is in motion. The insurance company gives his parents a discount for having the camera in his car. If the car makes a sudden motion, the recording is sent to an analyst at the insurance company, who determines if Carlos is engaging in risky behavior. The analyst gave Carlos a "D" grade for his driving. Carlos was shocked; he considers himself to be an above-average driver. His parents were not shocked. What aspect of behavioral economics might explain this situation?

Carlos Has a Camera in His Car That Records Continuously