Question

identify the cognitive bias:
natalia is interested in buying a new computer. she notices that a lot of her peers have one specific brand. natalia decides to buy that brand of computer.

• present bias
• loss aversion
• herd mentality
• endowment effect

Explanation:

Herd mentality (also known as bandwagon effect) refers to the tendency of people to follow the actions or choices of a large group. Natalia decides to buy a specific computer brand because many of her peers have it, which fits the definition of herd mentality. Present bias is about prioritizing immediate rewards over future ones, loss aversion is about preferring to avoid losses over acquiring gains, and endowment effect is about valuing something more because one owns it, none of which apply here.

Answer:

C. Herd mentality