Please finish carefully, I will give u a thumb up, Thanks! Some high-end retail

Question

Please finish carefully, I will give u a thumb up, Thanks!

Some high-end retail stores that distribute mail-order catalogues will prominently offer some very high priced goods for sale (e.g., a luxury sports car with gold-plated interior trim) in addition to their regular line of merchandise. Behavioural economists argue that the stores do not really plan to sell these goods, but they use these items to provide customers with a high reference point for the prices of the other goods in the catalogue. This practice is an example of Select one: a. the ultimatim game. b. loss aversion. c. anchoring d. none of the above Standard game theory predicts a solution to the ultimatum game that is rarely observed when people actually play the game. The key reason that behavioural economists believe the predicted and observed outcomes differ is because people account forof the outcome when making decisions. Select one a. loss aversion O b. fairness O c.efficiency d. utility

Explanation / Answer

c, anchoring is correct answer ( in anchoring decision will be made by consumer after taking the intial information into account)

d, utility

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.