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:

Negligently

Acting with a lack of care or attention to duty that results in harm or damage.

Rescind

To rescind means to revoke, cancel, or annul a contract, agreement, or resolution, effectively making it as though it never existed.

Rely

Depend on or trust in something or someone for support or maintenance.

Voidable

A contract or transaction that is legally valid but may be declared void by one of the parties.