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- Critically discuss whether maximising behaviour or satisficing behaviour is the best way to explain consumer behaviourAn economics professor finds that he strictly prefers a $10 bottle of wine over an $8 bottle, and a $12 bottle over a $10 bottle, and so on, but an $8 bottle over a $200 bottle. Explain why this makes him irrational according to a behavioral economics theory.What is the meaning of the denial of entanglement?
- why is behavioral economic beliefs better than traditional economicThe prisoner illustrates that rational, self-interested individuals will natuarally avoid the Nash equilibrium, because it is worse for both of them, true or false and why ?By means of two examples,explain the principle that economic agents take decisions at the margin
- With tip giving in a restaurant in mind, how might reducing your economic payoff still be rational.How does the implementation of behavioral economics principles influence the success of fundraising campaigns for non-profit organizations?A company has a dental plan for its employees. According to behavioral economics, the participation rate will be about the same wether people are given en easy enrollment form to fill out or are enrolled automatically but given en easy opt-out form to complete if they don’t want to participate