(b) Note that Schlicksup, before working at Caterpillar, was an accountant at Arthur Andersen (the auditing firm that was criminally indicted in the Enron scandal and went out of business), and by 2008 he believed he was going to get fired from Caterpillar. Name at least one behavioral bias discussed in class that might explain why he was prepared to take the risk of blowing the whistle in this case. (one paragraph limit).

One behavioral bias that might explain why Schlicksup was prepared to take the risk of blowing the whistle in this case is Reducing Regrets.

Explanation:

The only sin of Schlicksup was that he "was an accountant at Arthur Andersen (he auditing firm that was criminally indicted in the Enron scandal and went out of business)."  Self-convinced that he was going to get fired from Caterpillar, he then wanted to blow the whistle by 2008, which he should have done before being employed in Caterpillar, anyway.  He is surely suffering from the bias of reducing his regrets.  This makes him to be emotionally involved and to reach wrong conclusions that might not be based on facts.  He did not even ask himself if he was involved directly in the Enron-Arthur Andersen scandal.  Even if he was directly involved, has he not expressed remorse for his former actions to enable him to move on in life?  Schlicksup is simply going to illogical lengths to avoid having to own the feeling of regret.

say it in english maybe we can

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%