A Person's Incentive to Spend Additional Money on Conspicuous Consumption

question 23

Multiple Choice

A person's incentive to spend additional money on conspicuous consumption goods will be ____to the amount and reliability of independent information that people have about his abilities.

• A)Unrelated
• B)Positively related
• C)Inversely related
• D)Equal

---

Definitions:

Myopia

A condition where individuals or organizations focus on short-term gains at the expense of long-term benefits, often leading to suboptimal decisions.

Time Inconsistency

The phenomenon where a person's preferences change over time, such that what is preferred in the future is inconsistent with what is preferred now, often leading to planning and decision-making challenges.

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors that affect the economic decisions of individuals and institutions.

Endowment Effect

A cognitive bias where individuals value an owned object higher than its market value simply because they own it.