Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 19, Problem 8E
To determine
The knowledge of behavioural economics to explain an empirical phenomenon
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Students have asked these similar questions
According to behavioral economics, consumers
A.
do not always behave rationally because they
fail to ignore sunk costs.
B.
always
behave rationally because they
account for
sunk costs.
C.
always behave rationally because they take into account monetary costs and nonmonetary opportunity costs.
D.
do not always behave rationally because they take into account nonmonetary opportunity costs.
E.
do not always
behave rationally because they
accurately project
their future behavior.
University Health System located in San Antonio, Texas implemented a patient navigation program to improve screening for colorectal for Hispanic males, 50 and older, who were members of CareLink (Bexar County’s financial assistance program), and who had not received colorectal cancer screening in the last 10 years.
The program incorporated the principle of ____________ (i.e. mistakes are expected and opportunities are given for correction) by making calls to remind patients of their missed appointments. This is a behavioral economics principle under the behavioral concept of ____________.
Availability, Judgement
Allowance for errors, Choice architecture
Framing effects, Decision-making
Fairness, Decision-making
What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two examples.
Chapter 19 Solutions
Study Guide for Microeconomics
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Similar questions
- Suppose you are designing an intervention to increase daily physical activity among adults. Describe how you would draw on concepts from behavioral economics to design the intervention.arrow_forwardIndicate whether each of the following examples of behavior is consistent with the utility-maximization framework of traditional economics or is better explained by concepts developed by behavioral economists. Example Consistent with the Predictions of Traditional Economic Theory More Effectively Addressed by Behavioral Economics There are people who pursue a degree in theater rather than engineering, even though engineering careers are usually much higher-paying. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people would pay money to lower the incomes of others. People at all-you-can-eat restaurants eventually leave, even though they could continue eating for free.arrow_forwardPeer pressure is an important influence on the behavior of youngsters. For instance, many preteens begin smoking because their friends pressure them into being “cool” by smoking. Using utility theory, how would you explain peer pressure? How would this compare with the explanations provided by behavioral economics and neuroeconomics?arrow_forward
- Could you please write your own words, not copy-paste or plagiarism issues Question: Discuss the concept of an “overconfidence bias” and why this bias can be seen as being a “double edged sword” in the context of behavioral economicsarrow_forwardwhy is behavioral economic beliefs better than traditional economicarrow_forwardWhy might prospect theory-like behavior be rational? Why do many behavioral economists argue that such behavior irrational?arrow_forward
- What does behavioral economics have to say about each of the following statements? a. “Nobody is truly charitable—they just give money to show off.” b. “America has a ruthless capitalist system. Considerations of fairness are totally ignored.” c. “Selfish people always get ahead. It’s like nobody even notices!”arrow_forwardWhat is the goal of behavioral economics? Group of answer choices To eliminate the consumers’ state of mind from consideration in economic analysis. To shift economic theory from a mathematical base to more of a psychological study. To integrate the insights of psychology into economics to enrich our understanding of decision-making. To study consumer behavior over time rather than behavior in the moment and integrate these insights in economic analysis.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
- The primary research finding from studies of the “Ultimatum Game” is that when most people make economic decisions they … (choose one) -optimize. -consider the issue of fairness. -meliorate. -apply the availability heuristic.arrow_forwardBehavioral economics a. integrates psychological insights into economic models. b. relies on the assumption that homo economicus describes economic decision-making. c. assumes that economic agents have full information about the conditions surrounding their decisions. d. All of the above are correct.arrow_forwardIdentify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Please provide a detailed discussion. I will not give a positive rating for vague responses.arrow_forward
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