Porsche Received a Lot of Negative Feedback When It Announced

question 169

True/False

Porsche received a lot of negative feedback when it announced plans to release an SUV, but it went ahead anyway, and the Porsche Cayenne was a great success. This is an example of a peril of making decisions based on crowdsourcing.

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Definitions:

Public Policy

Government actions and regulatory measures that aim to address public issues, guide economic, social, and administrative activities.

Fully Rational

A term describing decision-makers who, with complete information, are able to consistently make choices that maximize their utility or profit.

Loss Aversion

A cognitive bias where the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

Framing

In behavioral economics, the way in which choices are presented to consumers, affecting their decision-making and preferences.