Loss Aversion Flashcards
1
Q
What is the endowment effect?
A
Once you own something, you’re less likely to give it up.
2
Q
What did Arkes & Blumer find?
A
People who paid more for a subscription used it more/
3
Q
What did Johnson & Goldstein find?
A
More people are organ donors when must opt out than opt in.
4
Q
The organ donor experiment is a violation of __________
A
procedure invariance.
5
Q
Why does the default effect occur?
A
Implicit recommendation - if the policy maker sets it as a default, then you should too.
