When Entering into Salary Negotiations, a New Employee Requests a Figure

question 40

Multiple Choice

When entering into salary negotiations, a new employee requests a figure higher than what she really wants, and the manager offers a figure lower that what she is prepared to offer. These people are using which of the following heuristics?

• A) The representativeness heuristic.
• B) The anchoring and adjustment heuristic.
• C) The availability heuristic.
• D) The framing effect.

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Definitions:

Scarce

A characteristic of resources that are limited in availability, which can lead to competition for their use.

Freely Available

Resources, information, or products that can be accessed or obtained without any payment or restrictions.

Economic Choice

Economic choice involves making decisions on the allocation of scarce resources among competing needs or desires to maximize benefits and utility.

Competitive Behavior

Actions taken by companies aimed at gaining an advantage over their rivals in the market, often through price adjustments, product innovations, and marketing strategies.