Dorothy likes to invest in gold as part of her overall financial investment portfolio, as her gut tells her it will increase dramatically in value. Her favorite and generally only source of investment advice is Wizard's Gold Hour on the OZ cable channel. As a result of this advice, Dorothy's portfolio mix is suboptimal, as it is too heavily weighted in gold. Behavioral economists would say that Dorothy suffers from

Question

Quizplus · Accepted Answer

Dorothy's preference for advice that confirms her pre-existing belief in the value of gold investments, despite potentially better advice available, is an example of confirmation bias. She seeks out information that supports her views and ignores or discounts information that contradicts them.

Dorothy Likes to Invest in Gold as Part of Her