Explain why the following reactions might reflect some deviation from rationality. a. After a widely reported earthquake

Question:

Explain why the following reactions might reflect some deviation from rationality.
a. After a widely reported earthquake in California, many people call their insurance company to apply for earthquake insurance.
b. In January, many fitness clubs offer special annual membership fees to attract customers who have made New Year’s resolutions to exercise more. Even when these memberships are costly, many of these new customers seldom visit the gym to work out.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

Question Posted: