Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact that he would enjoy the flavor of the tiramisu the same amount every time, Josh only buys it when others are having dessert and never buys it if he would be the only one having dessert. Behavioral economists would say that Josh's decision is affected by

Respuesta :

Answer: Framing effects

Explanation:

The framing effect is referred to as or known as a cognitive bias under which an individual tends to decide upon the options that are mostly based on the fact whether the given options are also represented with negative or positive connotations, i.e. as a gain or as a loss. Individual usually avoid risk while a positive frame is being presented but tend to seek risks while a negative frame is being presented.