Nigel believes that most “rich people” obtained their wealth either through hard work or by investing wisely. Assuming Nigel adopts this same perspective as a guide to his own spending and saving behavior, he is most likely to become: Group of answer choices more knowledgeable about the financial marketplace over time and increase his personal wealth. disillusioned later in life as he nears retirement. a consistent purchaser of lottery tickets. both disillusioned later in life as he nears retirement and a consistent purchaser of lottery tickets.
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Joe has lost a substantial amount gambling at a racetrack today. On the last race of the day, he decides to make a large enough bet on a longshot so that, if he wins, he will make up for his earlier losses and break even on the day. His friend Sue, who won more than she lost on the day, makes just a small final bet so that she will end up ahead for the day even if she loses the last race. This is typical race track behavior for winners and losers. Would you explain this behavior using overconfidence bias, prospect theory, or some other principle of behavioral economics?
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