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Suppose You Conduct a Study in Which Subjects Are Asked

Question 3

Multiple Choice

Suppose you conduct a study in which subjects are asked the following questions: 1."Imagine that you have decided to go to a basketball game where the cost is $25 per ticket.As you enter the arena,you discover that you have lost your $25.Would you still pay $25 for a ticket?" 2."Imagine that you have decided to go to a basketball game and you pay $25 for the ticket.As you are walking into the arena you realize that you have lost your ticket.Would you pay another $25 for another ticket?" You find that 90% of your subjects answered "Yes" to the second question,compared to the 50% that answered "Yes" to the first question.This is an example of:


A) the default effect.
B) the endowment effect.
C) narrow framing.
D) dynamic inconsistency.

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