Jerry starts his own business even when he is advised by family and friends that it is not a suitable opportunity. His friends feel that the market is uncertain and a new entry at this juncture is inadvisable. Jerry soon realizes that his friends were right and he should have taken their advise. In spite of himself, he is forced to admit that the market situation is such that it would take more than being a good entrepreneur to survive. Which of the following is Jerry experiencing?
A) exploitation
B) anchoring
C) information bias
D) illusion of control
E) reactance

Question

Quizplus · Accepted Answer

Jerry is experiencing the illusion of control, which is the tendency for individuals to overestimate their ability to control events or outcomes. He believed that his skills as an entrepreneur would be enough to overcome the uncertain market, but this proved to be false.

Jerry Starts His Own Business Even When He Is Advised