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HEADACHE MINI CASE: Fast Relief sells a pain killer that is especially effective on relieving headache pain. Under the slogan "If you really want to fix a problem, you have to use the right tools," Fast Relief advertising points out that while its tablets aren't as effective at relieving muscle pain as Cure-All, its leading competitor, clinical trials have shown that Fast Relief is 10 times more effective than Cure-All at relieving headaches. At the beginning of the advertising spot, a woman is shown with her eyes shut tight and her hand pressed against her forehead. Over the course of the ad, the woman's face gradually relaxes and she begins to look relieved and comfortable. Fast Relief also advertises its products by having its tablets used by actors to relieve their headaches during popular television shows.
-In the HEADACHE MINI CASE, by pointing out that Fast Relief is not very effective at relieving muscle pain, the company is engaging in ________.
Behavioral Economics
studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.
Myopia
A common vision condition where close objects appear clearly, but distant objects are blurry, often referred to as nearsightedness.
Behavioral Economists
Scholars and professionals dedicated to analyzing how psychological, cognitive, emotional, cultural, and social influences affect the economic choices made by individuals and organizations.
Time Inconsistency
Describes a situation where a person's preferences change over time in such a way that what they prefer at one point in time is inconsistent with what they will prefer at another time.
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