What bias or theory best fit the blanks in the statements below? A restaurant ha

Question

What bias or theory best fit the blanks in the statements below?

A restaurant has a high priced item since people associate high price with quality (explained by the _____ bias). This high priced item results in prices of other items to increase because people compare the other items to this one (explained by the _____ bias).

a. Anchoring and adjustment, overconfidence b. Representativeness, anchoring and adjustment c. Availability, anchoring and adjustment d. Loss aversion/prospect theory, representativeness e. Representativeness, loss aversion/prospect theory

Explanation / Answer

The correct answer is option B = Representativeness, anchoring and adjustment.

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