Suppose passengers on an airplane are randomly assigned to seats that are either on the aisle or by the window. Knowing that all passengers would prefer a seat by the window, the head flight attendant asks those who were assigned to an aisle seat how much they would be willing to pay to get a window seat instead. On average, the flight attendant finds that they would pay $20. Drawing on the insights of behavioral economics, you would expect that (on average) passengers who are initially assigned to a seat by the window would be willing to accept $20 to switch to an aisle seat. This is an illustration of

Suppose passengers on an airplane are randomly assigned to seats that are either on the aisle or by the window. Knowing that all passengers would prefer a seat by the window, the head flight attendant asks those who were assigned to an aisle seat how much they would be willing to pay to get a window seat instead. On average, the flight attendant finds that they would pay $20. Drawing on the insights of behavioral economics, you would expect that (on average) passengers who are initially assigned to a seat by the window would be willing to accept $20 to switch to an aisle seat. This is an illustration of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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