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Why Are People More Likely to Comply with a Request

question 34

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Why are people more likely to comply with a request for an unusual amount of money (like $1.77) ?


Definitions:

Abnormal Returns

The earnings on a stock (or portfolio) that exceed what would be predicted by an equilibrium model like the CAPM.

Inside Trades

Trading activities based on material, non-public information about a company, which is illegal in many jurisdictions.

Magnitude Problem

A challenge in assessing or comparing the significance of different quantities, often due to scale differences, leading to difficulty in making accurate judgments or decisions.

Active Investment Management

Active investment management involves making buy, hold, and sell decisions in a portfolio based on research, market forecasts, and analysis in an attempt to outperform a relevant benchmark.

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