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Brie?y describe the preference reversal phenomenon, and explain how Grether and Plott's (1979) experimental design deals with anchoring as one of its possible causes.
Using a drawing of a concave utility function, demonstrate how expected utility the ory cannot explain preference for an 80% chance of losing $4,000 to a sure loss of $3,000. This example is taken from problem 3' in Kahneman and Tversky's 1979 paper on Prospect Theory.
You are considering a new line of consumer products. You expect revenues of $14 million in each of the next ten years, while expenses are half of revenues (all cash flows are assum
Process economics questions for assignment
demand analysis of fast food among civil servant
compare the price elasticity of demand on two parallel demand curves for a given price and for a given quantity
what are the uses of correlation in economics?
A city government wants to raise $3 million by issuing bonds. By ballot proposition, the bond's coupon interest rate was set at 8% per year with semiannual payments. However, marke
Students in the red/black card game had to make individual deals. How would the situation change if they could bargain collectively?
what is indirect utility function?
Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and
Process of least cost method and how to do a minimisation problem
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