A Charitable Organization Telephones to Ask Mary to Contribute $100

question 106

Multiple Choice

A charitable organization telephones to ask Mary to contribute $100 to send delinquent youth to a summer camp.After she refuses,the solicitor asks if she would be willing to give just $10.Mary agrees.Mary was influenced by the __________ technique.

• A)foot-in-the-door
• B)face-in-the-mirror
• C)overjustification
• D)door-in-the-face

---

Definitions:

Coase Theorem

A principle that asserts under conditions of no transaction costs and well-defined property rights, parties will negotiate to correct externalities and allocate resources efficiently.

Bargaining Costs

Costs incurred during the process of reaching an agreement between two parties, typically including time, effort, and other resources spent in negotiation.

Property Rights

Legal rules stating what people or firms may do with their property.

Coase Theorem

A principle asserting that if property rights exist, and are transferable, externalities can be fully corrected through bargaining without government intervention.