Fine-dining restaurants commonly provide statements in their menus such as, “A 20% gratuity will be added to all checks for parties of six or more patrons.” Given that this statement tends to raise the level of tips or gratuities left by other groups of diners, the statement is a good example of:
A. the endowment effect.
B. loss aversion.
C. anchoring.
D. none of the above
Answer:C
Fine-dining restaurants commonly provide statements in their menus such as, “A 20% gratuity will be added to all checks for parties of six or more patrons.” Given that this statement tends to raise the level of tips or gratuities left by other groups of diners, the statement is a good example of:
A. the endowment effect. B. loss aversion. C. anchoring. D. none of the above