Dana Crockett is a San Antonio real estate investor. Although properties in Ston

Question

Dana Crockett is a San Antonio real estate investor. Although properties in Stone Oak have the strongest price growth and Alamo Heights properties have gone down in value, Dana still has made large investments in Alamo Height because she has a fondness for its glory days and is unwilling to acknowledge the shifting real estate demand. By using this strategy Dana has exhibited which logical fallacy that may challenge market efficiency?

Representativeness

Unresponsiveness

Conservatism

Psychological immobility of preference

Representativeness

Unresponsiveness

Conservatism

Psychological immobility of preference

Explanation / Answer

Dana has been unwilling to accept the changes in real estate demand because of her associations with the old locaility. This is due to attachments. The correct answer is D.

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