Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Several years ago, Donielle invested in Best Threads, a women's upscale apparel company, when she learned that the company was no longer charging customers for
Several years ago, Donielle invested in Best Threads, a women's upscale apparel company, when she learned that the company was no longer charging customers for custom alterations. At the time, Best Threads was the only company in the fashion industry doing this, and the price of Donielle's stock rose. Last month, however, Donielle found out that Best Threads violated federal labor laws and will likely be fined over $1 million, which will likely result in its stock price falling. Donielle subconsciously weighs the free custom alterations as more important than the significant fine incurred by Best Threads because she does not understand unfair labor practices. Therefore, she does not consider selling her stock in Best Threads. This is an example of which of the following behaviors?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The behavior described in the scenario is an example of cognitive bias known as Confirmation Bias Co...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started