What Is the Bad Apple Effect? Does the Threat of Being

question 17

Essay

What is the bad apple effect? Does the threat of being expelled or rejected prove to be an important force in producing "good apples" rather than bad ones?

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Definitions:

Marginal Analysis

The examination of the benefits and costs of an additional unit of consumption or production to make decisions on allocations of resources.

Risk Aversion

The behavior of preferring to avoid loss rather than making a gain, reflecting a preference for certainty over uncertainty.

Irrational Decision

A choice made that contradicts logical reasoning, often influenced by emotional factors or cognitive biases.

Status Quo Bias

The tendency to avoid making a decision.