Question

Felipe and meg are selling their home. they listed their house three months ago at an extremely high selling price, a price they randomly chose. they do not want to reduce the price to reflect what the marketplace shows their home is really worth. felipe and meg are participants in _____ bias.

Answer 1

The correct answer is anchoring and adjustment bias. This is defined as a psychological heuristic by which it influences an individual intuitively in regards to assessing the probabilities. An individual are likely to start with the implicit suggested reference points and as well as making adjustments in reaching their estimate.