Irrelevant alternatives in rational choice theory

Assignment Help Business Economics

Reference no: EM131385575

The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory. Using the examples he uses, discuss this topic in your own words.

Reference no: EM131385575

Questions Cloud

Struggle over expansion of slavery was the key to preserving : Discuss how both northerners and southerners in the early U.S believed winning the struggle over the expansion of slavery was the key to preserving their freedoms and to preventing their domination by the other section of the nation."

Methodologies of risk assessment : What do you think of the property of transitivity in choice theory and methodologies of risk assessment. How can we improve the ways we assess risk, or think about choices we make?

Delivers in regards to risk involved : Discuss Daniel Kahneman’s Mckinsey interview, and the message he delivers in regards to the risk involved in using inside information (one of the persistent problems in decision theory – with numerous recent examples, including the Financial Crash of..

Carton-tax relative to the absence of the tax : The demand for cartons of cigarettes is Q = 1200 – 10P and the supply of cartons of cigarettes is Q = 20P. Suppose the federal government levies a $10 per-carton-tax on sellers for every carton they sell. What is the statu tory incidence for the $10..

Irrelevant alternatives in rational choice theory : The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory.

Carve inroads into the rights of property : All of the following are ideas that Marx felt would carve inroads into the rights of property EXCEPT:

Assumed fixed at these levels regardless of level of output : You run a small business that uses both capital and labor to produce your output. The machinery (capital) has a marginal cost equal to $25 per hour and a marginal product equal to 50 units per hour. The marginal cost and marginal product of capital a..

Cause conflict between divisions : All of the following can cause conflict between divisions EXCEPT

How does your tax incidence analysis change : The market demand for a rare mineral is Q = 1,300 – 10P and the market supply is Q = 6P. Suppose the government imposes a tax of $4 per pound on the consumer. How does your tax incidence analysis change in the face of the $4 per pound tax ? How does..

User Account

All Pages