Consider an agent who has to choose how many donuts to eat. He exhibits the choices C{{1, 2}) = {1, 2} and C({1, 2, 3}) = {2, 3}. Can these choices be explained by : (i) maximization of a complete and transitive preference? (ii) satisficing? (iii) regret aversion?

Consider an agent who has to choose how many donuts to eat. He exhibits the choices C{{1, 2}) = {1, 2} and C({1, 2, 3}) = {2, 3}. Can these choices be explained by : (i) maximization of a complete and transitive preference? (ii) satisficing? (iii) regret aversion?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider an agent who has to choose how
many donuts to eat. He exhibits the choices
C({1, 2}) = {1, 2} and C({1, 2, 3}) = {2, 3}.
Can these choices be explained by :
(i) maximization of a complete and transitive
preference?
(ii) satisficing?
(iii) regret aversion?
%3D

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