Question

In: Economics

A study demonstrated "choice overload" by comparing sales between two jam sellers. One seller offered only...

A study demonstrated "choice overload" by comparing sales between two jam sellers. One seller offered only three varieties. The other sellers offered these varieties plus a dozen more. The seller with only three varieties sold even more jam than the other. What consequence of rational choice does this experiment violate, which proves that a cognitive bias is influencing choices? Explain in at most two sentences.

Solutions

Expert Solution

This happen because of paradox of choice. Their are two type of people  maximizer he is someone who is driven to make the best possible choice, which may mean they have to evaluate options exhaustively and yet may be less satisfied with their ultimate choice than someone who did less research. The latter one is Satisficers who are content to choose options that adequately meet their requirements they don’t waste time overthinking their options or regretting choices that have already been made.


Related Solutions

Bob has offered Alice the choice between the following two options:
Bob has offered Alice the choice between the following two options:Option A) Receive $10,000 in one year from today OptionB) Receive $500 every year starting one year from todayThe interest rate is fixed at 5%. Alice wants to choose the option with the higher present value. Calculate the present value for each option and determine which option should she choose?
if you only had one choice to make out of the two.....which is a "better measure"...
if you only had one choice to make out of the two.....which is a "better measure" of competitive balance in the sports environment:  The HHI (Hirfindahl Hirschman Index) or The Ratio? Overall, Choose one as your preferred method....but ....be sure to explain both methods; & WHY you prefer one over the other!! please write two paragraphs, one explaining each method and the second paragraph contains which is better and why.
The following data represent the results of an independent-measures study comparing two treatment conditions. Treatment One...
The following data represent the results of an independent-measures study comparing two treatment conditions. Treatment One Treatment Two 3.3 2.6 5 4.4 3.6 3.3 5.4 6 6.2 2.8 5.4 5.1 4.3 2.6 4.6 2.5 Run the single-factor ANOVA for this data: F-ratio:    p-value:   Now, run the t test on the same data: t-statistic:    p-value:   
When comparing Neoclassical and Keynesian ideals one will find a: “deeper oppositions between the two theories’...
When comparing Neoclassical and Keynesian ideals one will find a: “deeper oppositions between the two theories’ ways of linking individuals (as component parts of society) to society as a whole.” Explain how these two theories view individuals as parts of society.
Suppose that you have a choice between two mutual funds, one a load fund with no...
Suppose that you have a choice between two mutual funds, one a load fund with no annual 12b-1 fees, and the other a no-load fund with a maximum 12b-1 fee. How would the length of your expected holding period influence your choice between these two funds?
The following data represent the results from an independent-measures study comparing two treatment conditions. Treatment One...
The following data represent the results from an independent-measures study comparing two treatment conditions. Treatment One Treatment Two 2.5 1.7 3.9 4.5 4.3 3.2 4.6 2.9 2.9 3.2 5.1 3.8 4.2 2.3 Using technology, run the One-way ANOVA Test for this data: F-ratio:   p-value:   Now, run the Two Independent Sample t test on the same data: Note: Do this with "pooled variances" since one assumption we make with ANOVA is that the variances for each group are equal. t-statistic:   p-value:  
one can tell by comparing nodes between two given trees whether they relate to each other,...
one can tell by comparing nodes between two given trees whether they relate to each other, by having a reflected symmetric structure (i.e. being mirror images of each other), having identical structure, or not being related at all. In this assignment, you are asked to implement the following features. Hard-code some paired lists of integers. Build binary search trees from each list Print the binary search trees in the three orders discussed in class. Determine if the two binary search...
BestUvClass, Inc. has the choice between two types of machines. One costs less but has a...
BestUvClass, Inc. has the choice between two types of machines. One costs less but has a shorter life expectancy. The first machine costs $9,000, will last for two years, and produce revenues of $7,750 in the first year of operation. Operating costs will be 27 percent of revenues and the machine will be depreciated using the 3-Year MACRS schedule. The machine can be sold at the end of two years for $2,000. The initial change in net working capital will...
The Roger Company has the choice between two different types of die. One type cost less,...
The Roger Company has the choice between two different types of die. One type cost less, but it also has a shorter life expectancy. the expected cash flows after taxes for the two diferent dies are as follows: Period    0             1              2             3                4 A             (10000)      8000        8000 B             (12000)      5000        5000         5000           5000 The hurdle rate for this project is 10 percent.
A professor has recently taught two sections of the same course with only one difference between...
A professor has recently taught two sections of the same course with only one difference between the sections. In one section, he used only examples taken from sports applications, and in the other section, he used examples taken from a variety of application areas. The sports themed section was advertised as such; so students knew which type of section they were enrolling in. The professor has asked you to compare student performance in the two sections using course grades and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT