Existing Auction Sites, Such as EBay, Are Inherently More Valuable

question 61

Multiple Choice

Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites.This basic economic fact is called a(n) _____.

• A) deadlock effect
• B) lock-in effect
• C) smoke-and-mirrors effect
• D) anti-pattern effect

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Definitions:

Bounded rationality

A concept that human decision-making is limited by available information, cognitive limitations, and time constraints, leading to satisficing rather than optimal decisions.

Behavioral decision theory

A theoretical approach that studies the psychological factors influencing individuals' decision-making processes.

Potential investment

Refers to the opportunity to allocate resources, typically financial, into projects, assets, or ventures, with the expectation of generating a beneficial return over time.

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives, often considered a core function of management.