A Recent Willingness-To-Pay Survey Asked Respondents to Value the Waters

question 73

Multiple Choice

A recent willingness-to-pay survey asked respondents to value the waters of Salem Sound. The respondents were asked what they would be willing to pay to help protect the water. They were given the following choices: $10, $40, $100, $300, $650, $1,000, $3,000, $10,000 or fill in a value for some other amount. The type of behavioral bias will be captured by this question is _____.

• A) sunk cost fallacy
• B) time inconsistency
• C) falling prey to framing effects, particularly anchoring
• D) overconfidence

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Definitions:

Esteem Needs

In Maslow's hierarchy of needs, these are the fourth level, including respect, self-esteem, status, recognition, strength, and freedom.

Physiological Needs

The basic, essential requirements for human survival, such as food, water, shelter, and air, which are the foundation of Maslow's hierarchy of needs.

Affiliation Needs

Refer to an individual's need to build and maintain relationships or be part of groups.

Motivational Patterns

Motivational patterns refer to the systematic ways in which motivations influence behaviors and decisions, indicating underlying psychological factors driving individuals.