In a Survey of Consumers, Daniel Kahneman, Jack Knetsch and Richard

question 284

Multiple Choice

In a survey of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler asked their opinion of a hardware store's decision to

• A)go out of business because a larger hardware store opened in the same city; 82 percent of those surveyed believed it was unfair for the larger store to compete with the smaller store.
• B)raise the price of snow shovels the day following a snowstorm; 82 percent of those surveyed believed this was unfair.
• C)sell tickets to sporting and cultural events at prices higher than prices paid at the ticket windows for the same events; 82 percent of those surveyed believed this was unfair.
• D)remain in business even though the store was not making an economic profit; 82 percent of those surveyed believed it would be unfair for the store to go out of business if there were no other hardware stores in the same area.

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Definitions:

Emotional Standstill

A state of being emotionally stagnant or immobilized, often due to overwhelming feelings or unresolved issues.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, thus avoiding a potentially distressful truth.

Anger

A strong feeling of annoyance, displeasure, or hostility triggered by perceived wrongs.

Shock

A sudden and often negative emotional or physical reaction to an unexpected event.