All but One of the Following Behaviours Are Inconsistent with the Assumption

question 153

Multiple Choice

All but one of the following behaviours are inconsistent with the assumption of narrowly self-interested individuals.Which one?

• A) Leaving a tip at an out-of-town restaurant.
• B) Suing someone over a $50 dispute.
• C) Taking only one newspaper out of the machine.
• D) Returning a lost wallet full of cash to the owner.
• E) Getting the lowest price on a new car.

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Definitions:

Bundle Pricing

Marketing two or more products in a single package price.

Customary Pricing

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

Prestige Pricing

A pricing strategy where goods are priced higher to evoke a sense of luxury or quality, making them desirable due to their cost.

Cost-Oriented Pricing

A pricing strategy where the price of a product or service is determined based on the cost of production plus a markup.