Label each of the following examples as a case of time inconsistency, limited processing capacity, status-quo bias,
Question:
a. A person buys a nice bottle of wine for $50 and leaves it in the pantry for 20 years. At that point, the wine has aged and the value has appreciated to $250. Although he would never be willing to buy a bottle of the same wine for $250, the person plans to drink his old bottle rather than sell it.
b. Every night, a person sets her alarm for 7 a.m. the next morning, and every morning, she hits the snooze button at least four times.
c. People who are told the survival rate for a surgical procedure are more likely to undergo it than people who are told the death rate (even though the death rate is actually the same in both cases).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: