Sebastian Is a Negotiator for a Large Retail Chain

question 39

Multiple Choice

Sebastian is a negotiator for a large retail chain. During a negotiation for the best rate on pants, he gets into a heated argument with a supplier. Even though this supplier provides the highest quality, lowest cost pants, Sebastian refuses to do business with them and buys the pants for a more expensive rate elsewhere. What does this exemplify

• A) prospect theory
• B) rational economic thinking
• C) irrational economic thinking
• D) bounded rationality

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Definitions:

Statistics

The science of collecting, analyzing, presenting, and interpreting data.

Basic Statistics

The foundational principles and techniques for collecting, analyzing, interpreting, and presenting data.

Totals

The sum amounts resulting from the addition of numbers, quantities, or items.

Ratios

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other, often expressed as "a to b" or a:b.