Whenever Josh goes to his favorite restaurant,he wants to buy tiramisu,his favorite dessert.Despite the fact he would enjoy the flavor of the tiramisu the same amount every time,Josh only buys it when others are having dessert,and never buys it if he would be the only one having dessert.Behavioral economists would say that Josh's decision is affected by:

Question

Quizplus · Accepted Answer

Josh's decision to buy or not buy tiramisu is affected by the way the situation is framed - specifically, whether or not others are having dessert. This is an example of a framing effect, which is when our choices are influenced by how information is presented to us. The other answer choices - availability heuristic, confirmation bias, and self-serving bias - do not fully capture the way that Josh's decision-making is being influenced in this situation.

Whenever Josh Goes to His Favorite Restaurant,he Wants to Buy