In a Survey of Consumers, Daniel Kaheman, Jack Knetsch and Richard

question 78

Multiple Choice

In a survey of consumers, Daniel Kaheman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

• A)go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
• B)raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
• C)sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
• D)remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there were no other hardware stores in the same area.

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Definitions:

Aptitude

A natural ability or talent for learning or proficiency in a specific area.

Performance-Based

An approach or assessment that evaluates individuals based on their ability to perform tasks, achieve results, or meet specific standards.

Tacit Knowledge

Knowledge gained from personal experience and context, often hard to articulate or transfer to others.

Formal

Refers to something done in accordance with rules of convention or etiquette; suitable for or constituting an official or important situation or occasion.