MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
2nd Edition
ISBN: 9780134519517
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 18, Problem 9P

(a)

To determine

Movie choice of Paul and Maya from an individual perspective.

(b)

To determine

Factors affecting Maya and Paul when on a date and Paul’s choice if Maya decides to watch a comedy.

(c)

To determine

Maya and Paul’s movie choice, why it is a herding tendency and how it would lead to cascading of information.

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d)  Another classmate cares more about good grades: She gets 50 units of happiness for a B and 80 units of happiness for an A. If this classmate were your partner (but your preferences remained the same), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would she also want you as a partner?
Two players play the Ultimatum Game, in which they are to split $20.  A purely rational agent would only reject an offer of … Group of answer choices... -$20 -$19 -$1 -$0 -$10
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