![]() The others, 54 percent, said they’d swallow their annoyance enough to buy a replacement ticket. ![]() If you said #2, many are like you: 46 percent of people presented by researchers with a similar situation said they’d do something else with their evening. I’ll just buy another ticket.” #2: “No way I’m going to spend $40 on this concert! I’d rather go do something else How annoying! Tickets are still available at the door for $20. You must have dropped it somewhere on the way. You arrive at the concert venue, reach into your pocket for the ticket, and. WHEN IS $20 NOT QUITE $20? Imagine yourself in the following situation: Earlier today, you bought a ticket for a concert this evening. LO 8.4 Define fungibility, and explain why it matters in financial decision making. LO 8.3 Identify the types of opportunity cost that people often undervalue, and explain why undervaluing them distorts decision making. LO 8.2 Explain why sunk costs should not be taken into account in deciding what to do next. I’ll get my ticket for the concert.” #2: “You know what? Forget the concert.” Behavioral Economics: A Closer Look at Decision Making LEARNING OBJECTIVES LO 8.1 Define time inconsistency, and explain how it accounts for procrastination and other problems with self-control. How annoying! Which of the following do you then say? #1: “Oh well, never mind. You must have lost one of them somewhere today. hold on, what’s this? You definitely had five $20 bills in your pocket this morning, but now you have only four. You reach into your pocket for the money to pay, and. This time you arrive at the concert venue intending to buy your ticket at the door. I’ll just buy another ticket.” #2: “No way I’m going to spend $40 on this concert! I’d rather go do something else instead.” If you said #2, many are like you: 46 percent of people presented by researchers with a similar situation said they’d do something else with their evening. ![]() Which of the following is your reaction? #1: “Oh well, never mind. ![]() 179 WHEN IS $20 NOT QUITE $20? Imagine yourself in the following situation: Earlier today, you bought a ticket for a concert this evening. ![]()
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