Asked by amandeep jhanda on Sep 26, 2024

Refer to BargainStock.com. If you decide to trade with BargainStock.com, because of its name, which decision trap is in force?

A) Framing error
B) Sucker trap
C) Dollar cost averaging
D) Overconfidence
E) Escalation of commitment

Decision Trap

A situation in decision-making where biases, poor information, or pressure leads to a significant or systematic error.

Framing Error

A cognitive bias in decision-making that occurs when information is presented in a way that influences an individual's interpretation or decision.

Escalation Of Commitment

This refers to the phenomenon where individuals or organizations continue to invest time, money, or resources into a failing course of action due to the substantial resources already invested, rather than altering or abandoning the course.

  • Understand the concept and impact of decision traps and how to avoid them.