Asked by Brandon Lewis on Jul 25, 2024
Verified
According to Kahneman and Tversky,which of the following gas stations would you be most likely to choose to go to?
A) "Using your credit card will incur a 10 cent surcharge."
B) "Receive a 20 cent discount when you use cash!"
C) "Our prices never fluctuate!"
D) You would be equally likely to choose any of these.
Kahneman and Tversky
Psychologists known for their work on the psychology of judgment and decision-making, as well as behavioral economics.
- Acknowledge the role of cognitive biases in influencing decision-making.
- Discuss the role of framing in preference and decision-making.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
B
Explanation :
Kahneman and Tversky's research into prospect theory suggests that people are more likely to be attracted to gains (such as receiving a discount) rather than avoiding losses (such as avoiding a surcharge), making option B the most appealing choice.
Learning Objectives
- Acknowledge the role of cognitive biases in influencing decision-making.
- Discuss the role of framing in preference and decision-making.
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