Ulrich bought an investment property that he intended to rent to tourists on the beach. After six months, he had had only one rental for far less than the cost he had hoped to charge. His wife encouraged him to sell the home, but he insisted that it will be profitable if they don't give up and keep trying to rent it. Ulrich's unwillingness to sell the home and cut his losses is an example of the ____ effect.
a. escalation
b. persistence
c. endowment
d. sunk cost
Question 2
Participants in an experiment are asked to look at pictures of different infants and rate the attractiveness of each infant on a 10-point scale. The participants are tested in groups of three and indicate their ratings aloud. For almost all of the infants, the participants tend to give ratings similar to other group members. We can be most certain that their ratings represent private conformity rather than public conformity if
a. they exhibit much less conformity in the presence of the experimenter.
b. they give the same ratings alone as they do in the group.
c. their ratings result from their desire to fit in with the rest of the group members.
d. they are not especially motivated to be accurate in their judgments.
A seashell vendor in Tanzania sells to tourists seashells which have been taken from the sea alive,
Heading for the ocean on a beach at the Pu'uhonua o Honaunau National Historical Park
Beach Anatomy
Reaction 1: The First ATP Investment
Effect of Increasing the Investment Rate on the Steady State