Even though she is not in desperate need of boots, Ellen says that she would rather buy a pair of boots today (for $200) rather than wait two weeks, when they will be on sale for half the price. Ellen's decision most likely involves ____.
A) temporal discounting
B) risk aversion
C) the status quo bias
D) the omission bias

Question

Quizplus · Accepted Answer

Ellen's decision involves temporal discounting, which is the tendency to choose a smaller reward in the present over a larger reward in the future. In this case, Ellen values having the boots now more than saving money in two weeks, even though waiting would result in a better financial outcome.

Even Though She Is Not in Desperate Need of Boots