Psychologists Daniel Kahneman and Amos Tversky Conducted the Following Experiments

question 158

Multiple Choice

Psychologists Daniel Kahneman and Amos Tversky conducted the following experiments by asking a sample of people the following questions: Scenario A: 'Imagine that you have decided to see a play and paid the admission price of $10 per ticket.As you enter the theatre you discover that you have lost the ticket.The seat was not marked and the ticket cannot be recovered.Would you pay $10 for another ticket?'
Scenario B: 'Imagine that you have decided to see a play where admission is $10 per ticket.As you enter the theatre you discover that you have lost a $10 bill.Would you still pay $10 for a ticket for the play?'
As long as additional tickets are available,there's no meaningful difference between losing $10 in cash before buying a ticket,and losing the $10 ticket after buying it.In both cases,you are out $10.Yet,far more subjects (88 per cent) in Scenario B say they would pay $10 for another ticket and see the play,while in Scenario A only 46 per cent of the subjects say they would be willing to spend another $10 to see the play.
Which of the following is the best explanation for the results of the experiment?

• A) The endowment effect applies in Scenario A since people already own the ticket and therefore it is more valuable but this is not so in Scenario B.
• B) In Scenario B, people had not anticipated spending an additional $10 so in effect the price of the ticket is $20 and not $10 whereas in Scenario A, the price of the ticket is still $10.
• C) In Scenario A, people make an immediate connection between the lost ticket and the play and feel poorer by incorrectly assigning a greater value to the value of the ticket, whereas in Scenario B they do not make the connection between the lost $10 bill and the play.
• D) The net benefit derived from watching the play is lower in Scenario A where the effective cost is $20 compared to the net benefit in Scenario B.

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Definitions:

Semen Volume

The total amount of seminal fluid ejected during ejaculation, which can vary based on numerous factors.

Sperm

are male reproductive cells that fertilize a female's egg in order to produce offspring.

Refractory Period

A phase following an orgasm during which an individual is unable to achieve sexual arousal or orgasm again.

Retrograde Ejaculation

A situation in which, instead of being expelled through the urethra during ejaculation, semen is redirected into the bladder.