Question

1. If a detector is immaterial to a decision, it may be material to other decisions depending on the probabilities and preferences involved.

		True
		False

2.

The value of clairvoyance may be zero.

		True
		False

3."Work by Galinsky and Mussweiler (Journal of Personality and Social Psychology, 2001) study negotiations. They find that whichever party makes the first offer obtained a better outcome. They also find that the initial offer is highly predictive of the final settlement."

Which heuristic does the above setting/scenario illustrate?   Availability  Representative  Anchoring  Mental Accounting  

Answer 1

Answer 1) True

Explanation- The detector can be immaterial to the decisions which it less complements to however the same detector can act as a material to other decisions when it complements to probability and preferences involved.

Answer 2) True

Explanation- Absolutely!! the value of the clairvoyance may be zero usually the value of the clairvoyance is zero when it is measured with respect to cost and flexibility of price.

Answer 3) Anchoring

Explanation- Anchoring refers to the tendency of an individual to rely on first of offer while doing settlement. Usually the benefit of making a first offer is it acts like anchoring and people focus on that offer more as compared to offers made lateron.