Question
For each of the phenomenon below: (i) explain why behavior is inconsistent with rational choice framework and (ii) explain how the behavior is consistent with
For each of the phenomenon below: (i) explain why behavior is inconsistent with rational choice framework and (ii) explain how the behavior is consistent with appropriately identified behavioral heuristic or bias.
(d) Consider Christy, who has always believed in pursuing her dreams. In high school she was good in mathematics and physics, as well as an avid reader. By fifteen she had a passion for stargazing. As an adult she is adventurous, outgoing and likes to take risks. When survey respondents are asked whether they think Christy is more likely to be an 4 astronaut or a lawyer, majority of them choose her to be an astronaut.
(i) Inconsistency with rational choice (explanation):
(ii) Behavioral heuristic or bias (with explanation):
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