BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. If you decide to trade with BargainStock.com, because of its name, which decision trap is in force?
A) Framing error
B) Sucker trap
C) Dollar cost averaging
D) Overconfidence
E) Escalation of commitment

Question

Quizplus · Accepted Answer

Choosing BargainStock.com based on its name involves a framing error because the decision is influenced by how the information is presented (the name suggests bargains) rather than by an objective analysis of the company's value or service quality.

BargainStock.com Based on Incomplete but Reliable Factual Information, Maggie Has Decided