Felipe and Meg are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to reduce the price to reflect what the marketplace shows their home is really worth. Felipe and Meg are participants in _____ bias.
A. blind
B. ego
C. confirmation
D. sunk-cost
E. anchoring and adjustment
E. anchoring and adjustment
Anchoring and adjustment bias is the tendency to make decisions based on an initial figure. Managers will often give their employees a standard percentage raise in salary, even though the raise may be completely out of alignment with what other companies are paying for the same skills. This is an instance of the anchoring and adjustment bias, the tendency to make decisions based on an initial figure.
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Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs to be replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________ bias.
A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment
Advertisements for prescription drugs often feature potential benefits and negative side effects that consumers may experience with use of the medication. These ads present two-sided arguments
Indicate whether the statement is true or false
Wynona has three hours left to turn in her project but feels like she needs four hours. To keep her stress level manageable, she keeps telling herself “I can meet the deadline. I can meet the deadline.” Wynona is managing stress through _________.
A. time management B. relaxation C. positive thinking D. exercise E. treatment
We can only be thrifty with money. We have no control over time.
a. True b. False