2.4 Rational Consumer Choice & Behavioral Economics

Multiple Choice

Consumers are unable to distinguish between "‘Buy 1, get 1 free’ or ‘Buy 2 and get 50% off". This is an example of...

• Biases due to anchoring

• Biases due to framing

• Availability bias

• Bounded rationality

• Bounded self-control

Multiple Choice

If students overestimate the probability of gun violence happening in the US, resulting in them not applying for Ivy League universities, this is an example of...

• Biases due to anchoring

• Biases due to framing

• Availability bias

• Bounded rationality

• Bounded self-control

Multiple Choice

After a 5-hour gaming session, a "tilted" gamer decides to continue playing Brawl Stars despite feeling frustration. This is an example of...

• Biases due to anchoring

• Biases due to framing

• Bounded selfishness

• Bounded rationality

• Bounded self-control

Fill in the Blank

Given time constraints in the research process, a consumer chooses to go on a trip that she knows is only her third choice. This is an example of...

Open Ended

Provide another example of a 'rule of thumb' that people might use to make decisions (besides the ones we've looked at in class)

Multiple Choice

A growing number of restaurants only serve diet or low sugar versions of soft drinks. This is an example of...

• Default choices

• Restricted choices

• Mandated choices

Multiple Select

Nudge theory is... (check all that apply)

• Related to choice architecture

• Highly expensive

• Always used to help consumers make rational decisions

• Shows that consumers can be irrational