alexander is heavily invested in the stock of Nortel, a telecommunica.pdf

alexander is heavily invested in the stock of Nortel, a telecommunications giant. However,
Nortel has been in steady decline, and even though all signs point to the fact that Nortel will
likely go bankrupt. Alexander holds onto his stocks, unwilling to sell unless he makes back at
least the money he invested. Jim is washing his laundry and, as he checks his pockets, finds an
unexpected windfall of $50. Elated because it is $50 more than he had before, he decides to
splurge on a lobster-and-filet-mignon dinner. Geneva is a researcher at a biotech firm, and faces
decision paralysis every time a big question is posed to her. Whenever her boss asks her what
project she wants to work on, she always says she is indifferent, so eventually her boss stops
asking for her input and just assigns her however he wants. Tiffany lives in Alameda, California.
She recently received two job offers, one in Oakland and one in San Francisco. The San
Francisco job pays $1000 more per year, so Tiffany accepts the job. However, the travel time,
which is an hour more each way, quickly becomes a burden. Steve is trying to diet. Each day he
says the diet will begin today, but each time he sees potato chips, he indulges in them. The next
day, he promises his diet will really start, but the vicious cycle continues Alexander's mistake is
an example of Jim's mistake is an example of Geneva's mistake is an example of Tiffany's
mistake is an example of Steve's mistake is an example of
status quo bias. mental accounting. loss aversion. overconfidence. misperceiving opprtunity
costs..

1. alexander is heavily invested in the stock of Nortel, a telecommunications giant. However,
Nortel has been in steady decline, and even though all signs point to the fact that Nortel will
likely go bankrupt. Alexander holds onto his stocks, unwilling to sell unless he makes back at
least the money he invested. Jim is washing his laundry and, as he checks his pockets, finds an
unexpected windfall of $50. Elated because it is $50 more than he had before, he decides to
splurge on a lobster-and-filet-mignon dinner. Geneva is a researcher at a biotech firm, and faces
decision paralysis every time a big question is posed to her. Whenever her boss asks her what
project she wants to work on, she always says she is indifferent, so eventually her boss stops
asking for her input and just assigns her however he wants. Tiffany lives in Alameda, California.
She recently received two job offers, one in Oakland and one in San Francisco. The San
Francisco job pays $1000 more per year, so Tiffany accepts the job. However, the travel time,
which is an hour more each way, quickly becomes a burden. Steve is trying to diet. Each day he
says the diet will begin today, but each time he sees potato chips, he indulges in them. The next
day, he promises his diet will really start, but the vicious cycle continues Alexander's mistake is
an example of Jim's mistake is an example of Geneva's mistake is an example of Tiffany's
mistake is an example of Steve's mistake is an example of



status quo bias. mental accounting. loss aversion. overconfidence. misperceiving opprtunity
costs.