People are less upset when they miss getting an early payment discount than when they are asked to bear a late payment surcharge.This best illustrates the importance of
A) belief perseverance.
B) confirmation bias.
C) framing.
D) the availability heuristic.

Question

Quizplus · Accepted Answer

This pattern of behavior can be explained by the framing effect, which refers to the idea that the way in which information is presented (or framed) can influence our decisions and judgments. In this case, the option of receiving an early payment discount is framed as a gain or a positive outcome, whereas the option of paying a late payment surcharge is framed as a loss or a negative outcome. Research has shown that people tend to be more risk-averse when faced with losses than when faced with gains, and thus they may be more motivated to avoid the surcharge than to secure the discount.

People Are Less Upset When They Miss Getting an Early