identify which principle applies to each scenario and place the appropriate terms in the corresponding spaces. a. after spending hours researching his choices, mark decides on a laptop that will cost him $799. as he walks into his local retailer, a salesman presents him a laptop with marginally better features at the same price. however, mark would have to do further research to verify that the new alternative is in fact better. as a result, he decides that the laptop he previously decided on is good enough and buys it. mark's decision is an example of risk aversion. fairness. bounded rationality. b. charlotte delivers food for a fried chicken restaurant. when charlotte delivers a meal to a household during a major icestorm, the family, feeling sorry that charlotte has to work in extreme weather, decides to give her a $20 tip for a $10 delivery. the family's decision is an example of fairness. bounded rationality. risk aversion. c. cathy is a very good driver. in fact, she has never been in an accident in her life. however, she still takes out a comprehensive car insurance policy every year, rather than just the liability coverage the state requires. cathy's decision is an example of bounded rationality. fairness. risk aversion.
