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.
Correct Answer:
Verified
Q1: Behavioral economists:
A) rely primarily on data drawn
Q2: Neuroeconomics is a new field of economics
Q4: Which of the following does NOT describe
Q5: Which of the following concepts should be
Q6: The endowment effect:
A) refers to the observation
Q7: Narrow framing:
A) refers to the observation that
Q8: Which of the following is true regarding
Q9: Motivations for behavioral economics include:
A) people sometimes
Q10: A person who uses a rule of
Q11: The default effect:
A) refers to the observation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents