Joe Pre-Orders a Non-Refundable Movie Ticket

question 105

Multiple Choice

Joe pre-orders a non-refundable movie ticket.He then reads a number of reviews of the movie in question that make him realize that he will not enjoy it.He goes to see it anyway,rationalizing that otherwise his money will have been wasted.Is Joe succumbing to the Sunk Cost Fallacy,and why?

• A)Yes,since he invested a valuable asset,his time,in a project based on its previous costs.
• B)No,because the cost of the movie was not recoverable and would have been lost whatever action he took.
• C)No,because going to see the movie means that the product of his initial investment was realized as originally planned.
• D)No,because he incurred no further costs by going to see the movie.
• E)No,because he won't know for sure if he enjoys the movie until he sees it.

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Definitions:

Confidentiality

The obligation to protect and not disclose information that is private, sensitive, or classified to unauthorized individuals.

Self-Interest

Acting in a way that is most advantageous to oneself, based on personal benefits or gains.

Fraud In The Inducement

A false representation of fact by one party to another party, intended to deceive and induce the other party to enter into a contract.

Retrieve

The process of getting something back from a place where it was stored or from a condition of being inaccessible.