Quiz 3 Flashcards
1
Q
Why might you want to subsidize preventative care?
A
- Psychological sunk cost
- Selection effect
- Entitlement effect
2
Q
Psychological sunk cost
A
You have to pay for something to appreciate its value
3
Q
Selection effect
A
By offering a product for free/cheap, you might attract people who would not use it for its legitimate use
4
Q
Entitlement effect
A
When you get something for free you expect it for free in the future
