The book demonstration in which you lose $10 or a theater ticket and are faced with the dilemma of whether or not to purchase a second ticket,people who lose the ticket will be _______ likely to purchase the ticket because of

Question

Quizplus · Accepted Answer

People who lose the ticket will be less likely to purchase the ticket because of psychological accounting. This is because they may perceive the $10 loss as sunk cost and not want to incur additional costs. Expected utility theory suggests that people will make decisions based on the option that provides the highest expected value or utility, but in this scenario, psychological accounting may override expected utility.

The Book Demonstration in Which You Lose $10 or a Theater