Sebastian is a negotiator for a large retail chain. During a negotiation for the best rate on pants, he gets into a heated argument with a supplier. Even though this supplier provides the highest quality, lowest cost pants, Sebastian refuses to do business with them and buys the pants for a more expensive rate elsewhere. What does this exemplify?

A. prospect theory
B. rational economic thinking
C. irrational economic thinking
D. bounded rationality


Answer: C

Psychology

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