Casinos Make Their Interiors Very Plush and Expensive Looking, Knowing

question 4

Multiple Choice

Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gamblers' behavior?

• A) Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.
• B) Most people are unaware of the True risk of making certain decisions and believe that a larger wager has higher odds of winning.
• C) The luxurious surroundings increase the probability of classical conditioning through mere exposure, which results in behavior that is not rational.
• D) The functional risk of gambling is decreased in luxurious surroundings, leading gamblers to wager more.

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Definitions:

Social Status

The position or rank of a person or group within the social hierarchy, often influencing power, prestige, and access to resources.

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through a population or social system.

Diffusion of Innovation

A theory that explains how, why, and at what rate new ideas and technology spread through cultures or social systems.

Informal Social Contacts

The interactions that occur between individuals in a casual, unstructured setting, outside of formal organizational or institutional contexts.