Question at position 53 When Oludapipo goes into a car dealership to shop for a new truck, the price sticker on the vehicle that he wants says $32,000 even though he thinks it should really be closer to $25,000. As he negotiates with the salesperson, Oludapipo offers 30,000 rather than starting at $25,000. In this example, the number on the price sticker has served as a(n) __________.anchoradjustmentheuristicbounded rationalitySingle choice
A
anchor
B
adjustment
C
heuristic
D
bounded rationality

Question

Question at position 53 When Oludapipo goes into a car dealership to shop for a new truck, the price sticker on the vehicle that he wants says $32,000 even though he thinks it should really be closer to $25,000. As he negotiates with the salesperson, Oludapipo offers 30,000 rather than starting at $25,000. In this example, the number on the price sticker has served as a(n) __________.anchoradjustmentheuristicbounded rationalitySingle choice

A

anchor

B

adjustment

C

heuristic

D

bounded rationality

BlackTom AI · Accepted Answer

Here’s how to break down the question and each option, step by step.
Option 1: anchor
The price sticker of 32,000 provides an initial reference point for Oludapipo. In negotiation psychology, such a starting value serves as an anchor around which subsequent offers are formed; people tend to adjust from that reference point rather than from an absolute ideal. This fits the concept of anchoring in the anchoring and adjustment heuristic.
Option 2: adjustment
While adjustments from an anchor occur during negotiation, the sticker itself does not represent the adjustment—it's the starting point used to guide later concessions. Saying it is the adjustment would misidentify the role of the sticker, which is more about setting the baseline than about the size of the final change.
Option 3: heuristic
A heuristic is a mental shortcut or rule of thumb used to simplify decision making. Anchoring is indeed a type of heuristic, but the question asks for the specific function of the price sticker in this scenario. Labeling the sticker only as a general heuristic omits the precise mechanism at work—the initial anchor point—which is more informative for this example.
Option 4: bounded rationality
Bounded rationality refers to the idea that people make satisficing rather than optimal decisions due to cognitive and information limits. While negotiations can involve bounded rationality, the concrete role of the sticker in this case is better described as an anchoring effect rather than a statement about overall rationality limits.
Summarizing the distinctions: the sticker’s role is to set a numerical reference that biases subsequent offers upward (or downward) from that point, which is classic anchoring behavior rather than describing a general heuristic, a simple adjustment, or bounded rationality concerns.

Similar Questions

A hiring firm knows that starting wages for recent college graduates with a history major is between $36,000 - $50,000. The hiring firm offers candidates $35,000 hoping to get folks hired at the lower end of the range. This is most related to which term discussed in class?

Which bias involves focusing on initial information?

Which decision-making bias means giving disproportionate weight to possibly irrelevant information while not enough weight to other factors?

In consumer judgment, starting with an initial evaluation and altering it with additional information is known as

When completing the survey assignment with the guessing of the year the Taj Mahal was completed and phone number question, what type of individual decision making bias was this an example of?

What is anchoring bias?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler