Researchers present participants a raffle for a trip to Hawaii in which 10 tickets in total are being sold. Most participants are willing to pay more for a first ticket if they had none or the tenth ticket if they had already had nine than they would pay for a fifth ticket if they already had four. Explain this phenomena in relation to behavorial economics
Researchers present participants a raffle for a trip to Hawaii in which 10 tickets in total are being sold. Most participants are willing to pay more for a first ticket if they had none or the tenth ticket if they had already had nine than they would pay for a fifth ticket if they already had four. Explain this phenomena in relation to behavorial economics
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 13QP
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Researchers present participants a raffle for a trip to Hawaii in which 10 tickets in total are being sold. Most participants are willing to pay more for a first ticket if they had none or the tenth ticket if they had already had nine than they would pay for a fifth ticket if they already had four.
Explain this phenomena in relation to behavorial economics.
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