1. Explain the following example both in terms of anchoring effect and in terms of projection bias.
“Subjects tasted a spoonful of plain yogurt and immediately rated their experience. They were then asked to predict how they would rate the experience of consuming a full cup of the same yogurt….”,
Kahneman, D. & R. Thaler(2006) Utility Maximization and Experienced Utility, Journal of Economic Perspectives, 20:1, pp. 221-234
2. Explain why the phenomenon of cognitive dissonance, as exemplified by the fable of sour grapes(Aesop), contradicts standard theory.