Use marginal benefit-marginal cost analysis

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Super freakonomics chapter 3 Levitt and Dubner describe two studies, which provided empirical support for Gary Becker’s prediction that even family members would engage in what might be termed strategic altruism. The first study showed that an elderly parent in a retirement home is more likely to be visited by his grown children if they are expecting a sizable inheritance. The second study produced evidence that the number of visits increases when there is competition between siblings for a parent’s estate. Use marginal benefit-marginal cost analysis to explain these observed outcomes.

Reference no: EM13995795

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