Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 22, Problem 16QE
To determine
Determine the role of nudges in the traditional model and in the behavioral model.
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Chapter 22 Solutions
Microeconomics
Ch. 22.1 - Prob. 1QCh. 22.1 - Prob. 2QCh. 22.1 - Prob. 3QCh. 22.1 - Prob. 4QCh. 22.1 - Prob. 5QCh. 22.1 - Prob. 6QCh. 22.1 - Prob. 7QCh. 22.1 - Prob. 8QCh. 22.1 - Prob. 9QCh. 22.1 - Prob. 10Q
Ch. 22 - Prob. 1QECh. 22 - Prob. 2QECh. 22 - Prob. 3QECh. 22 - Prob. 4QECh. 22 - Prob. 5QECh. 22 - Prob. 6QECh. 22 - Prob. 7QECh. 22 - Prob. 8QECh. 22 - Prob. 9QECh. 22 - Prob. 10QECh. 22 - Prob. 11QECh. 22 - Prob. 12QECh. 22 - Prob. 13QECh. 22 - Prob. 14QECh. 22 - Prob. 15QECh. 22 - Prob. 16QECh. 22 - Prob. 17QECh. 22 - Prob. 18QECh. 22 - Prob. 19QECh. 22 - Prob. 20QECh. 22 - Prob. 21QECh. 22 - Prob. 22QECh. 22 - Prob. 23QECh. 22 - Prob. 24QECh. 22 - Prob. 25QECh. 22 - Prob. 26QECh. 22 - Prob. 1QAPCh. 22 - Prob. 2QAPCh. 22 - Prob. 3QAPCh. 22 - Prob. 4QAPCh. 22 - Prob. 1IPCh. 22 - Prob. 2IPCh. 22 - Prob. 3IPCh. 22 - Prob. 4IPCh. 22 - Prob. 5IPCh. 22 - Prob. 6IP
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- Do you believe in the principles of behavioral economics as the new way to guide economic thought and theory or are the fundamentals of traditional economics(eg. Efficient Markets Hypothesis) a necessary baseline which enables us to then understand deviations from rationality? Why? Give two examples of both real-life irrationality (behavioral economics) and rationality (traditional economics).arrow_forwardWhy 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 whether a theory incorporates those actual mental processes?arrow_forwardExplain two or more of the behavioral economics concepts listed below and give an example of each Response Parameters Perhaps you can provide a link to a graphic or a video that enhances your discussion. Concepts: Confirmation bias, overconfidence effect, hindsight bias, availability heuristic, planning fallacy, framing effects, anchoring, endowment effect, status quo effectarrow_forward
- We learned that we can use choice between a gamble over someone's best and worst outcomes and getting an outcome of interest (like getting pizza) for certain as a way to assign numeric values to utility (on a scale of 0 to 1). Using this method, if you are indifferent between the following: A gamble that has a 0.3 chance of your best possible outcome (and no lower chance), and a 0.7 chance of your worst possible outcome. Getting pizza for certain. it means that your utility for getting pizza is:arrow_forwardWhy might prospect theory-like behavior be rational? Why do many behavioral economists argue that such behavior irrational?arrow_forwardWhat do you think of the ethics of using unconscious nudges to alter people’s behavior?arrow_forward
- Can i get help?arrow_forwardIndicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should act, or whether it is reserved for behavioral economists to examine. Consistent with the Predictions of Traditional Reserved for Behavioral Economics Example Economic Models Some people treat $80 they earn differently from $80 they receive as a gift. Some people would be willing to pay money to lower the incomes of others. Some people sacrifice disposable income to help their children pay for college. Some people choose to work fewer hours after receiving a raise at work.arrow_forwardIn the Salop circle model, if all consumers get more pleasure from ice cream (u increases), how does the equilibrium change?arrow_forward
- Behavioral economics has been around for a while but it is experiencing a new resurgence. Note: ✓ Select an option True False er than the Save Answer button will NOT save any changes to yourarrow_forwardConsider this scenario; then, complete the blank in the following statement by selecting the best answer. This month, Cara's utility bill was $250$250 higher than expected, but she also receives a $250$250 rebate on her homeowner's insurance. Behavioral economics would predict that Elaine is likely to be [blank] than she was before either of these things happened.arrow_forwardBehavioral economics studies behavior of economic agents, but neoclassical economics does not. a) Uncertain b) True c) Falsearrow_forward
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