The Hot-Hand Fallacy

question 24

Multiple Choice

The hot-hand fallacy

• A) Is the belief that once an event has occurred several times in a row, it is less likely to repeat
• B) Is the belief that once an event has occurred, it is less likely to repeat
• C) Is the belief that once an event has occurred several times in a row, it is more likely to repeat
• D) Is the belief that if an event has never occurred, it is more likely to occur

---

Definitions:

Common Resource

A resource like air or water, that provides users with tangible benefits but is difficult to exclude nonpaying users from consuming or depleting.

Publicly Owned

A description for businesses or assets owned by the government or the public sector, often emphasizing their accountability and service to the public rather than profit motive.

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, leading to overall degradation.

Rival In Consumption

A characteristic of a good whereby one person's use diminishes the ability of another person to use the same good.