When Significant Uncertainty Exists Surrounding the True Value of an Object

question 17

Multiple Choice

When significant uncertainty exists surrounding the true value of an object at auction,buyers contemplating a bid should bid less when:

• A) they have less information about the true value of the item.
• B) they are less confident in their own estimates of the true value of the object.
• C) there are many other buyers bidding against them.
• D) all of the above.
• E) none of the above.

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Definitions:

Extinction

The process in psychology where a conditioned response decreases or disappears when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Negative Reinforcement

A behavioral conditioning principle where the removal of an undesirable or aversive stimulus following a behavior increases the likelihood of that behavior being repeated.

Aversive Stimulus

A stimulus that is unpleasant or painful, leading to avoidance behavior.

Delay

The period between the onset of the conditioned stimulus and the onset of the unconditioned stimulus in the conditioning process.