Q: Why do behavioral economists consider it helpful to base a theory of
Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about...
See AnswerQ: Economist Gerd Gigerenzer characterizes heuristics as “fast and frugal” ways
Economist Gerd Gigerenzer characterizes heuristics as “fast and frugal” ways of reaching decisions. Are there any costs to heuristics being “fast and frugal”? Explain and give an example of how a fa...
See AnswerQ: There’s no such thing as bad publicity. Evaluate this statement
“There’s no such thing as bad publicity.” Evaluate this statement in terms of the recognition heuristic.
See AnswerQ: Suppose that Ike is loss averse. In the morning, Ike’s
Suppose that Ike is loss averse. In the morning, Ike’s stockbroker calls to tell him that he has gained $1,000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an...
See AnswerQ: You just accepted a campus job helping to raise money for your
You just accepted a campus job helping to raise money for your school’s athletic program. You are told to draft a fund-raising letter. The bottom of the letter asks recipients to write down a donation...
See AnswerQ: In the early 1990’s, New Jersey and Pennsylvania both reformed their
In the early 1990’s, New Jersey and Pennsylvania both reformed their automobile insurance systems so that citizens could opt for either a less-expensive policy that did not allow people to sue if they...
See AnswerQ: What does behavioral economics have to say about each of the following
What does behavioral economics have to say about each of the following statements? a. “Nobody is truly charitable-they just give money to show off.” b. “America has a ruthless capitalist system. Con...
See AnswerQ: Do people playing the dictator game show only self-interested behavior
Do people playing the dictator game show only self-interested behavior? How much divergence is there in the splits given by dictators to the other player?
See AnswerQ: Evaluate the following statement. “We shouldn’t generalize from what people
Evaluate the following statement. “We shouldn’t generalize from what people do in the ultimatum game because $10 is a trivial amount of money. When larger amounts of money are on the line, people wi...
See AnswerQ: What do you think of the ethics of using unconscious nudges to
What do you think of the ethics of using unconscious nudges to alter people’s behavior? Before you answer, consider the following argument made by economists Richard Thaler and Cass Sunstein, who favo...
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